Hello, this is my first write up attempt!

I will focus on value investing concepts, and to hunt and highlight hidden gems that might have been otherwise unnoticed by the public. I am providing honest opinion based on 2 sides of the coin, so that an investor can make their own independent decision on whether to put in an investment or not.

HARBOUR-LINK GROUP BHD (2062)

• Shipping & Marine Services
• Logistics Services (incl. warehousing, customs clearance, etc)
• Heavy lifting & haulage (Crane & Equipment)
• Engineering Works (O&G)
• Property Development & Construction

• Branding; 1 look at their name and their logo and you will know that they are dealing with logistics. The name is catchy and easy to remember.
• Website looks modern. This reflects that the company is open minded and able to accept and adapt to new changes, even though the company has been established for a long time.
• Very experienced management team.
• High barrier of entry - High CAPEX required to acquire machinery. Being a large company means they can achieve economies of scale and force prices lower due to lower inventory costs, which smaller companies can't achieve.
• Reputable company - they must be doing their logistics business right, for being able to dominate >50% market share in East Malaysia.
• Able to receive higher margin due to the correct business model of integrated logistics. From vessel services, to crane rental for lifting, to trucking and warehousing. "Bao-ka-liao"
• Asset Play; Acquired 53 hectares of industrial land beside Bintulu port, GDV of MYR 1 billion - Land, especially industrial land appreciates very rapidly if they are located beside ports, due to the reduction of costs required for inner-land transportation. If they play their cards right, they can either do rental which give high recurring income, or build it into a industrial township. An alternative cunning thought, they can also play the "bully game" by forcing others to be located further away from the port, therefore "forcing" them to use their transport.

• Competitive freight rates for shipping segment. This is reflected by the low operating margins.
• Unsure of what future projects can they capture. 60% of earnings growth in FY15 depend on logistics services and crane business, which is getting their profits from the construction of RM1.8 billion Samalaju Industrial Park. The park is projected to complete by 2017.
• Reduced business due to lower crude oil prices; According to Wikipedia, Bintulu has estimated 85% of natural gas, and 50% of crude oil in Sarawak. Therefore a majority of income coming from Bintulu derives directly or indirectly from O&G sector.
• Chairman is conservative on future growth prospects based on the upcoming economic downturn.
• Reduced trade flow due to forecasted economic downturn.
• The Baltic Dry Index which is a representation of ocean freight prices have been falling. This will prove to be a bad sign for Harbour's shipping arm by reduced operating margins.

• Continuous low oil price = increased profit margin. Already reflected in FY15. Oil not expected to rebound in the near term.
• Benefit from Samalaju-SCORE project; by getting increased cargo volume. Acquired 2 new container vessels with 700 TEU capacity.
• MNCs especially heavy industries may take advantage of the weaker MYR by establishing new plants in the region, therefore increasing business flow for Harbour.
• Pan Borneo Highway; Potential benefits directly (via construction, lifting and logistics income) and indirectly (boost of road logistics due to improved transportation network)

• MD, YONG PIAW SOON, 63 - Founder in the forwarding industry in East Malaysia since 1975. Got an honest and reliable face. ha ha.
• Director, WONG SIONG SEH, 53 - Founder, in the shipping industry since 1980s
• DATO’ TOH GUAN SENG, 60 - Founder of Eastern Soldar Engineering & Construction (ESEC). 40 years experience in O&G industry.
• LAU SII HIN, 64 - 30 years experience in transportation, inventory and mechanical industries. Key person for overseeing workshop repair, maintenance, ordering of spare parts, day to day operations.