With the new govt promise of a higher payment of oil royalty to both sabah and sarawak, I assume there will be more development and higher spending power for both the state government and the East Malaysia people.
In the long run i would assume there will be more trades in sabah and sarawak. The import of products to satisfy the expected higher spending by the East Malaysia people or to bring in raw materials for future infrastructure development project ( based on the manifesto, it seems the Pan Borneo highway would be one of the priority in improving the connectivity between rural and urban areas in East Malaysia). The growth in trades is expected to be a boon for shipping companies in sabah and sarawak.
The main port in sarawak is the Bintulu port of which there are currently only 3 major container cargo players there, MTT Shipping (unit of Taiwan based Evergreen Marine Corp), Shin Yang Shipping Corp Berhad and Harbour Link Berhad.
Shin Yang , Northport and Harbour Link has also team up to form the East Malaysia Network which will help achieves economies of scale through sharing of resources (vessels, terminal arrangement and networks). This i assume will reduce the risk of these to companies price cutting each others. Hence setting at least a floor price for the charter rates which would protect both companies profits.
Good growth for Harbour Link going forward. Appreciate your views on this.
coming QR will be bombard because will included the profits on peak season (before CNY, january all shipping company overloaded)
And most important BDI index maintain above 1300.
While mostly sarawak related counter hit badly for the past 12 trading days, this counter still solid. Because they don't have much direct business with BULU PUTEH
after qr out, the price soar to 0.75 and now back to 0.70, no dividend also, so any hopes on this counter? it's been 2 years the price stay at this level...
1- sarawak election play (boost the econmy) 2- logistic BDI recovery (festival season moe shipping) 3- low PE, healthy balance and every QR keep improving and back to good track.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jordanmaggie61
1,894 posts
Posted by jordanmaggie61 > 2018-04-02 12:01 | Report Abuse
Waiting for 50sen