ABC Transport Plc stock shares has increased by 22 per cent year-to-date, climbing from N1.23 at the start of January to N1.50 as of March 11, 2025.

The auto company investors attributed this positive momentum to its strategic diversification initiatives, notably its substantial investment in Compressed Natural Gas (CNG) trucks and the establishment of ABC Cargo Limited, a fully independent logistics division.

The surge in stock shares has elevated the company’s market capitalisation from N2.942 billion to N3.588 billion in the last three months.

Mr. Jude Nneji, the Managing Director, ABC Transport Plc, said that over the past six months, the company had invested over N8 billion in acquiring CNG-powered and other specialised trucks, underscoring its commitment to sustainable and cost-effective transportation solutions.

Nneji hinted that this move not only reduces the company’s carbon footprint, but also lowers operational costs by decreasing reliance on diesel fuel. According to the company, the adoption of CNG technology represents a crucial step in ABC Transport’s sustainability journey, aligning with global environmental standards.

In a bid to diversify its service offerings, ABC Transport launched ABC Cargo Limited, an autonomous logistics division.

This new entity is poised to enhance the company’s market presence in the logistics sector, providing specialized services that cater to the evolving needs of clients across Nigeria and the West African region.

For the fiscal year ending December 31, 2024, ABC Transport reported a pre-tax profit of N634.7 million, a remarkable turnaround from the pre-tax loss of N260.1 million recorded in 2023.

Nneji expressed that the total revenue, surged to N12.6 billion from N7.1 billion in the previous year, with significant contributions from loads and waybills (₦4 billion), sales of vehicle spares and speed governors (N2.8 billion), and haulage operations (N2.8 billion).

Nneji further commented that the company’s leadership had also taken other strategic steps towards sustaining growth in these new segments.

“For instance, it has invested heavily in a new maintenance facility in Calabar and also improved its driver training facilities.

“These strategic initiatives and robust financial performance have positioned ABC Transport favorably in the market, reflecting a strong buy trend that commenced in 2024 and has persisted into 2025,” he added.

As the company continues to innovate and expand its operations, it remains a focal point for investors seeking sustainable and profitable opportunities in the transportation and logistics sector.

https://independent.ng/abc-transport-stock-shares-rise-by-22-as-diversification-delights-investors-2/