Singapore licensed fund manager
Insights
IPO Note - All-Link Air & Sea Limited
By
Kenny Tan
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Small forwarder, fast lane
All-Link is an asset-light ASEAN freight forwarder: it coordinates cargo movement without owning aircraft, ships, warehouses or trucks. The listed business is two operations: a three-person Singapore booking-and-billing platform that produced 90.4% of FY25 revenue, and labour-intensive owned operations in the Philippines and Malaysia that produced the remaining 9.6%.
Investment summary
Possible niche in US-bound air cargo from Vietnam. Despite its size, All-Link handled 12% of Vietnam-origin US-bound air cargo, which is expected to grow at ~23% CAGR in the next 5 years. Scaling lane volumes here and providing value-added services can help differentiate All-Link from the competitive freight forwarders market.
Key dependencies on related parties. Valuable commercial functions – customer origination and a large part of capacity procurement – sit outside the listed group, with entities controlled by the founding family. Public shareholders own the billing platform and the ASEAN operating subsidiaries and will rely on the external entities for continued referrals and support.
Watch for (gross) profitability. Freight rates pass straight through a gross-basis forwarder’s income statement. FY24 and FY25 reflect a more stabilised financial profile for the company; sales climbed 4% but gross profit declined 15% in FY25. Gross profit and cash conversion are the measures that matter.
Suppliers were financing the business: Average payable days lengthened to 161 in FY25 against stated carrier and co-loader terms of 30–60 days. Normalising the supplier balance would require around USD13mn. The group carries no bank debt, so this float is the balance sheet.
IPO funds normalised the balance sheet: Carriers and working capital took SGD11.4mn from the IPO funding, 64% of net proceeds.
Valuation reflects the risks. The stock trades at about 8.8x FY25 earnings and 4.5x EV/EBITDA against a peer set clustered near 10x P/E, with net cash of USD23.6mn behind the equity. The discount fairly captures the small scale, two-customer concentration and short public record; any re-rating should follow evidence of durable gross profit rather than freight-rate-driven revenue.
The company is slated to report 1HFY26 results on or around 13 Sep 26, where the IPO funding should aid in reflecting a more normalised working capital environment. It will also showcase how All-Link managed profitability amidst the rising freight rate environment of 1HFY26.
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