MingZhu Logistics Holdings Limited (NASDAQ: YGMZ) had an impressive performance on Wednesday, seeing a 12% increase during regular trading hours. However, the real excitement began in the afterhours session, where the stock skyrocketed by an additional 87%, nearly doubling its price by the end of the day. This surge was driven by the announcement of a significant contract secured by one of its subsidiaries.
High-Profile Contract Spurs Afterhours Rally
The substantial afterhours movement was triggered by MingZhu’s subsidiary, Shanghai Feipeng Supply Chain Management Co., Ltd. (“Feipeng”), securing a major 1-year vehicle transport contract from Sinotrans Logistics Northwest Co., Ltd. Under this contract, Feipeng will provide automobile transportation services for Sinotrans Logistics, transporting new energy commercial vehicles for Zhejiang Geely Holding Group Co., Ltd. The initial agreement involves Feipeng deploying 100 trucks for the task, highlighting the company’s logistical capabilities and strategic importance in the transportation sector.
The contract win not only underscores MingZhu’s operational strength but also sparked a dramatic increase in trading volume. Over 2 million shares changed hands, ten times the usual volume, reflecting heightened investor interest and confidence in the company’s future prospects.
MingZhu Background and Strategic Importance
Established in 2002 and headquartered in Shenzhen, China, MingZhu Logistics is a 4A-rated professional trucking service provider. The company leverages its regional logistics terminals in Guangdong Province to offer tailored solutions through a combination of self-owned and subcontractor fleets. Feipeng, founded in 2014 and based in Xinjiang, provides integrated logistics supply chain solutions, emphasizing cost reduction and efficiency.
Mr. Jinlong Yang, Chairman and CEO of MingZhu Logistics, commented on the contract win, stating, “This showcase win demonstrates our capacity to flawlessly support high-profile customers and positively impacts our business financially. This capability is fueling significant momentum and growth for our company. Moreover, this achievement is a substantial win for our investors, reflecting our dedication to unlocking greater value.”
Conclusion
MingZhu Logistics’ afterhours surge highlights the market’s positive reception of the Sinotrans Logistics contract win. As the company continues to expand its logistical capabilities and secure high-profile contracts, investor confidence appears well-placed. With a significant increase in trading volume and a strong future outlook, MingZhu Logistics is poised for continued growth and success in the logistics industry.
