Browsing through various announcements made by companies in Bursa Malaysia, one company has caught many investors’ attention.

That company is Nationwide Express Holdings Berhad (NATWIDE 9806), a logistics company struggling to be released from PN17 status.

In general, no courier companies should be badly affected during the pandemic situation as more and more people have opted to shop online for every single item.

The Malaysian market has witnessed the mushrooming of foreign courier companies fighting to seize the biggest market share. Most of the companies are from China and Singapore under various brand name.

Only three Malaysian owned courier companies making their present felt at the moment. POS Malaysia and Nationwide are seasoned players in the industry. Both are struggling financially to stay afloat. The new kid on the block is Kargomind Express, a technology driven courier company.

NATWIDE has approximately less than 2 months to table a practical and workable turnaround program.

As of 3^rd December, NATWIDE market capitalisation stood at RM 20 million.

Based on the latest Annual Report, the big block of Tan Sri Basir’s family owns at least 53.48 percent of the entire paid-up capital. However, none of them holds any executive power either in the Board or Management.

Judging from NATWIDE’s financial standing, NATWIDE might not be suitable as a takeover target for any logistics company. Cash flow position is not so healthy for operation and expansion, coupled with a list of creditors with a huge amount that need to be handled. On top of that, there is one pending legal case estimated to be around RM 9 million of potential claim by the plaintiff.

A truly white knight is needed to rescue NATWIDE and salvage the listing status. The clock is ticking for the February 2022 deadline.

A picture is worth a thousand words. This is a snapshot of NATWIDE price movement for the last 10 years, based on monthly timeframe.

Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. Wealthstudio is sharing our observations. Wealthstudio analysis is based on detailed research and analysis based on facts and figures available in the market (thank you Google), plus technical analysis from Tradingview's charting. Please make your own informed decision before buying this share or whatever share for that matter.