Summit Alliance Port shares surge 108% since June on profit growth, dividend hopes

Shares of Summit Alliance Port Limited (SAPL) have soared by 108% since June this year as investors bet on strong dividend prospects following a robust rise in profits for the first nine months of fiscal year 2024-25.

According to Dhaka Stock Exchange (DSE) data, the company's share price closed at Tk43.20 yesterday, up from Tk20.80 on 22 June. The rally reflects growing investor optimism driven by the company's strong earnings performance and expansion in logistics operations.

Alliance Holdings holds 23.48% of SAPL's shares, while Summit Holdings owns 8.07%. Among key individuals, Alliance Holdings founder and SAPL Managing Director Jowher Rizvi holds 5.48%, and Summit Group Chairman Aziz Khan owns 7.03%.

SAPL, a leading inland container terminal and logistics operator, reported that its consolidated revenue jumped 313% year-on-year to Tk612 crore during the July-March period of FY25, up from Tk148 crore a year earlier. 

The growth was largely driven by its subsidiary, Container Transportation Services (CTS), which contributed 72% of total revenue, generating Tk440 crore in sales during the period.

SAPL's consolidated profit also more than doubled, rising 106% to Tk69 crore from Tk33.43 crore in the same period of FY24. Earnings per share stood at Tk2.34 for the nine months to March.

In FY24, SAPL posted a net profit of Tk41 crore and paid a 15% cash dividend.

Established in 2013, CTS initially provided domestic transportation services but has since expanded into freight forwarding after obtaining a customs licence in June last year. It also partnered with Germany's Hellmann Worldwide Logistics as its local agent.

In January this year, SAPL announced a strategic partnership with Hellmann Worldwide, under which the German logistics giant subscribed to 3.33 lakh new shares of CTS at Tk66.50 each. 

The collaboration is expected to enhance SAPL's international reach and strengthen its operational efficiency across South Asia.