Harbour-link Group Berhad

TS Tong in his column on the edge disposed $LPI / 8621 (LPI CAPITAL BHD) and recycled the capital to purchase $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) at RM 1.50

very interesting

KUCHING: Harbour-Link Group Bhd has beefed up its shipping fleet with two newly acquired container vessels.

$HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) – Ending the difficult year of FY2024 with almost RM 1b revenue

Those following the shipping and logistics industry would know that the industry in the past 12 months was really tough. Almost every shipping company fell into losses at some point in this downcycle, including global leaders such as Maersk, Hapag Lloyd, HMM, etc, before the shipping conditions began to improve due to various geopolitical reasons that we have covered quite in depth previously already.

As usual, this is just my notes in breaking down what I see in the quarter report, and is purely for information purposes only. This should not be taken as any investment advice, you should do your due diligence and read the original reports yourselves and make your own decisions. Most of the numbers are rounded for ease of presentation.

Let’s just quickly go through the 4th quarter and full year fy24 results of these very volatile times.

1. Harbour recorded RM 287mil revenue this qtr, with GP of RM 55mil thus leading to GPM of roughly 19%. They recorded a net profit of roughly RM 32.6mil, of which RM 27.3mil are attributable to companies they have controlling stake in, while RM 5.5mil is NCI.

2. After spending close to RM 90mil to acquire 2 new vessels, their PPE rises to RM 405mil. That being said, cash position is still maintained around RM 277mil, whilst investment securities and other current assets make up about RM 155mil. With a debt position of around RM 22.6mil short and RM 28.7mil long, implies total debt of RM 51.3m. This makes their net cash position to be about RM 380.7mil. NTA rises to RM 2.02 per share, after paying out 6 sen of dividends.

3. Taking a look at cash flows, they generated NOCF of about RM 125mil in the year, or about RM 40mil in this quarter. Outside of the acquisition of their new vessels, they typically have capex spent of about RM 10+mil a quarter, so if we just assume a normalized capex, they would have generated about ~ RM 80mil in FCF this year. It’s pretty impressive, to me, that they managed to acquire 2 new containerships (which is a rather big expense) almost purely from operating cash flows, and actually haven’t touched their huge cash pile in this downcycle year.

4. For the full year, shipping segment had ~RM 588mil revenue (60%), integrated logistics RM 217mil (22%), machineries segment RM 132mil (13%), engineering segment RM 39mil (4%) and property development RM 11mil (1%).

5. PBT wise, the breakdown is shipping RM 73mil (60%), integrated logistics RM 42mil (34%), machineries RM 10mil (8%), Engineering -3mil, and property RM 6mil(5%).

6. PBT margins for each segment this year: shipping 12.4%, integrated logistics 19.4%, machineries 7.6%, engineering loss, and property 54.5%.

7. As you can see, the shipping segment’s margins this year took a bit hit compared to the year before, while the integrated logistics segment remained quite stable. This is quite expected, considering the first half of the year, the shipping industry was probably the worst it has been in a long time.

8. Due to the timing of recognition of costs and revenue, the machineries segment this quarter dropped into losses. This answers the question I had last Q, when I was very surprised at the strong results from this segment. Worth noting is their shipping segment hadn’t experienced the margin expansion from the seafreight like global shippers had, while the integrated logistics had a huge improvement this quarter. Property segment had a small sale of land, which they recognized RM 3mil profits.

9. The management continues to remain confident of their future prospects, and guided an improved utilization rate and freight rates in the upcoming 2 quarters. Their new vessels are already in service, so that’s another good sign. The speed is quite surprising, but it’s good to capture as much as the high freight rates as they can.

10. Integrated logistics division also remains positive and management sees improved activities due to recovery in the manufacturing and O&G sectors.

11. For the other divisions too, the management also guides for positive outcomes and overall expects to deliver favourable results in the next financial year.

12. The management declares another 3 sen dividend, bringing full year FY24 dividend to be another 6 sen, or almost RM 24mil, like last year. The ex date for this dividend will be announced after it has been approved at the upcoming AGM. So far, the company has shown a lot of reluctance to dip into their cash pile in spite of continued strong operating profits. The payout ratio is roughly ~30% of PAT, or about 20% of NOCF. It sits at a comfortable payout level, which would be understandable in normal times however I’m just curious what the company plans to do with their ~RM 380 mil of net cash going forwards.

13. For the FY24, and at current market cap of around ~ RM 560mil, this gives them a trailing PE of about 6.6x (or 5.3x including NCI). And just for information purposes only as some people love to use this ratio, would put their ex cash PE of around 1.7x.

The Edge's Centurion Club Awards 2024 sees $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) as the Centurion of the Year for 2024. This comes after Harbour was also shortlisted as one of Forbes' Best under a Billion club not long ago, which hopefully should put them on the radar of more people to look into and study their business.

Other companies that scored a triple winner on their respective categories (Highest RoE, highest growth in PAT, and highest returns to shareholders) in their sector include $DELEUM / 5132 (DELEUM BERHAD) $KOTRA / 0002 (KOTRA INDUSTRIES BERHAD) and $REDTONE / 0032 (REDTONE INTERNATIONAL BERHAD) .

The award is evaluated based on the the scoring criteria of return to shareholders (30% weightage); PAT growth (40%); and ROE (30%) over three years.

While harbour is probably not likely to win this award again soon, as they are coming off of unprecedented freight rates in 2023 (and thus the benchmark they will have to compare with is unrealistically high in a normal business environment), I think they will still score rather well in general.

Anyhow, congratulations to all the winning companies! Are any of them part of your investment portfolios? The award winners could be a good place to start as a shortlist for further study.

DHL Ocean Freight Market Outlook, July '24.

DHL Regularly posts their market outlook presentation for their investors and interested parties. As one of the leaders in this space, I think it's important to pay attention to their words for a feel of the industry-- not just if you're investing in shipping and logistics companies (like $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) or $SYSCORP / 5173 (SHIN YANG SHIPPING CORPORATION BERHAD) shin yang group), but also if your company is involved in global trade either directly or indirectly. For example, if your company relies of sales to/from Europe/US from Malaysia/Asia, you would know that the upcoming quarters will see a huge impact from logistics costs (for example $HARTA / 5168 (HARTALEGA HOLDINGS BERHAD) 's previous quarter).

The situation has only gotten worse compared to earlier in the year, however it's unclear how bad things will continue to be, or whether there will be improvements or not in the coming months. Anyway, you can just google search for the DHL report, but here are some of the main highlights I think are worth paying attention to.

1. Port congestions are at an 18 month high, with further escalation expected from potential port strikes in Germany (and US). Other than that, there are increasing labor tensions in France too.

2. China spot rates had 11 consecutive weekly increases, and Shanghai-California route is around 5x higher than a year ago.

3. As with all other shippers, DHL has started to introduce PSS (peak season surcharge).

4. Secondary markets, like intra-Asia (hint), saw a steep increase in freight rates in June.

5. In spite of high freight rates, demand continues to be strong; with Peak Season typically in August but this year they are seeing a prolonged peak.

6. The concerns on tariffs (US-CN and EU-CN) are also pushing companies to ship out goods ASAP ahead of peak season.

7. It's worth noting that the Panama Canal is slowly increasing crossings, as we enter into the rainy season. Meanwhile, the Suez canal is trying to attract containerships by offering discounts.

8. Generally, all Asia outbound trades are in undersupply condition and DHL expects this strong demand on Asia outbound to remain for at least the next 3 months. Conversely, there's a big mismatch in trade balance on the return trip, causing many ships to have to ship back empty containers to Asia to catch the next shipment (so called blank sailings).

9. Meanwhile, Euro and Americas are in a balance situation. However, there's a potential rerouting of ships to service the more "lucrative" Asia- routes. I mentioned before that shipping doesn't exist in silo, and companies will often rebalance their capacity to get the most bang for their buck, and when that happens the route that was formerly in oversupply could suddenly change to undersupply, and the cycle repeats until a working balance can be formed.

10. DHL expects spot rates on major East-West lanes to continue to increase strongly, while other lanes will remain relatively stable. Eventually, things will even out and potentially maintain at a high level.


****

Personal additions:
From the above, we can see that companies from this part of the world selling to US and EU will have to grapple with high and highly volatile freight rates; while companies that import US and EU products to sell here would probably be not impacted as much.

Interestingly, $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) was classified as Non-Shariah as of 31 May 2024. While the exact reason was not disclosed, I believe it was due to their high cash holdings.

If it is for that reason, then the recent purchase of 2 new vessels for ~RM 100mil would solve the issue, and at the year end they might be added back into the Shariah compliant list again.

Harbour could also dish out more dividends such that their cash value drops below the threshold. 😂

KUCHING: Harbour-Link Group Bhd has committed a capital expenditure (capex) of RM100mil for the purchase of container vessels and material handling equipment.

I followed @zhexiangxd enter $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) at 1.2

$HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) Q3FY24 Notes - Margins Continue to Expand; Machineries Segment is Surprisingly Strong and works in Sarawak are gaining Steam. Spends around RM 100mil to acquire 2 new containerships and Handling Equipment

Harbour sees their net profit continue to rebound from the lows, rising about 40% QoQ. This is their 3rd quarter of improving performance and the management continues to be optimistic about their future prospects. An unexpected boost actually came from their Machineries segment, which is currently the strongest performing segment in terms of RoA. This is a relatively new segment and it's great to see it doing so well.

Anyway, let's dig through what I think are some of the main highlights from the QR :

1. Gross Profit is RM 48.3mil, with GPM of around ~18.7%. Unlike most other companies, due to their sheer cash holding, Harbour generates another RM 6mil from interests and other income, which should be mainly from their MMF holdings. PBT ends up at RM 35.1mil, and PAT RM 29.5mil, with EPS of 6.06sen per share. Using TTM results, Harbour is now trading at roughly PE 7.3x. Using latest results for annualizing it, puts Harbour at roughly 6.6x forward PE.

Using ex cash calculations that some people love, would put harbour at about ex cash PE 1.9x-3x. (using either RM 450mil net cash or RM 350mil net cash). Take these numbers as you will.

2. Their cash and cash equivalents stands at RM 491.3mil, with borrowings of roughly RM 43.5mil, thus leaving net cash position at RM 447.8mil as end march. Bearing in mind, that this excludes the potential purchase of ~RM 100mil worth of 2 new containerships and other handling equipment, which would reduce the cash balance and be added to the PPE instead. NTA stands at RM 1.95 after the payment of 3 sen dividend last Q.

3. Operating Profit is RM 109mil (vs RM 69mil last 2Q), with NOCF at RM 85.2mil (vs RM 60.2mil last 2Q) in these 3 quarters. Cash flow continues to be good. Dividend paid out so far is only RM 38.4mil, more than supported by operating cash flows. Interestingly, they have raised proceeds from issuance of shares-- but I understand HARBOUR's outstanding shares had not changed. This is likely from one of their subsidiaries but I'm unclear about this at the moment.

4. Shipping segment revenue drops around 9% qoq due to the lower cargo volumes coming off from Christmas season (and CNY holidays). In spite of that, profit increases by around 12%. Freight rates in this region had rebounded compared to few quarters back, albeit slower than in Europe. Same goes for the integrated logistics segment; but they had a big jump in profits due to the uptick in O&G industries requiring special cargoes and handling.

5. Machineries trading segment also showed strong growth from the delivery of ship-to-shore container cranes.

6. Going forward, the management expects the shipping and marine segment to remain favourable and is expecting to see higher load factors and stable freight rates. They are seeing high utilization rates for their vessels, and they have bought 2 unit container vessels which will be delivered in mid-May and early June.

7. Integrated Logistics segment is expected to remain favourable too, with new project cargoes in Bintulu and other 3PL work in the O&G industries. They will buy more transport vehicles and handling equipment to cater for the increased cargo volumes they are seeing.

8. Machinery segment is seeing promising demand on earth moving machinery as well as material handling equipment. They are in the progress of bidding for more port equipment supply projects, and will achieve their sales targets (but didn't specify how much their sales target is).

9. Engineering and Construction segments should still remain a rather small part of the whole business, although the management is expecting a favourable outcome. At the very least, we may stop seeing losses being reported here?

10. Overall, the group expects to continue to remain stable and favourable.

***

This is the first time in a while that Harbour is spending big CAPEX for expansion. In spite of all that, the cash balances will still be very robust and I think, other than global freight rates, the pick up of work in O&G and Sarawak in general seem to be doing very well for them.

The topic that very few cover is the impact of the reinstatement of the cabotage policy for Sarawak, which we should be seeing somewhere end of the year if no hiccups happen.

In last year's AGM, the management mentioned that they are trying to have a sustainable dividend policy while planning for buying new containerships. With this out of the way, I wonder if the management would be more comfortable being more generous with their dividends. Currently, the payout ratio is sitting at only near ~25%.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

Ahead of the upcoming QR, $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) is seeing strong volumes coming in. Lately, there has also been some people highlighting the cash richness and profitability of the company.

@kopicatch99 $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) is expected to release their results soon. Those who read, know. Those who don't, say it's expensive.

$SYSCORP / 5173 (SHIN YANG SHIPPING CORPORATION BERHAD) / SYGROUP - Another Marine Logistics Company Finally Experiencing Tailwinds after a long down cycle.

By now, I hope everyone should be familiar with the sort of dynamics of the marine logistics industry from all the discussions we've already had. Another company I had been reading about recently is Shin Yang Group, who shares some overlaps with $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD).

This is written by terence775 purely for education purpose only, and you should do your due diligence before making any investment decisions.

Briefly, their business segments are:

1) Shipping Segment, which includes container haulage and dry and liquid bulk shipping which operate in SEA as well as internationally including East Asia, and Far East regions.

2) Ship building and repair, which as the name implies, is involved in newbuilds as well as repairs, modifications, etc. of ships. To this end they have 3 shipbuilding yards in Miri, Bintulu, and Kuala Baram. They also have floating dock facilities for more niche, specialized repairs.

3) Land Logistics and transportation, warehousing, especially with their newly acquired subsidiary Mewah Exim.

4) Gas division via their acquisition of Piasau Gas, which is involved in the manufacturing and distribution of industrial gases including air separation,

Items 1, 2 and 3 are their core business, which accounts for the bulk of their revenue. Piasau gas was acquired in 2022 if I remember correctly, and while small, seems to be contributing well considering the price they paid for it.

I think the company is now in an interesting position as they are experiencing tailwinds in all their segments and could start to report improving numbers in the coming months. So far, it seems like the market is unawares yet.

-The shipping catalyst have been discussed in depth already for a long time. You can read back on the HARBOUR stream to read all the back and forth over the past year or more. A nice update is that SYGROUP says the cargo volumes have stabilized with higher exports from Samalaju and KKIP. (This can tie in to pmetal, pmbtech, and omh as well)

-The ship building segment had been in a doldrums for years, but is recently making a comeback. This industry update was initially highlighted by @RHBTradeSmartMY 's report on $TAS / 5149 (TAS OFFSHORE BERHAD) and subsequently @Ryunanda had highlighted it again. Recently, there is Petronas's new phase of capex spending, which aims to have more newbuilds of OSVs to replace their old ones-- this is expected to start end of the year, which aims to construct 100 vessels over 4 years. Apparently, each OSV is estimated to cost between RM 70-100mil (According to Dato Richard), depending on the scope and complexity, so you can do the maths. Other companies in this space also include $SEALINK / 5145 (SEALINK INTERNATIONAL BERHAD) , however as always the extent of who benefits as well as the risk involved in each must be studied by yourselves further.

- Ship repair segment is also seeing good demand again, with their floating Docks in Miri hitting 100% utilizations and the others are around 70%. As per the AGM, the management explained that their shipbuilding has around RM 175mil outstanding contract value, while the ship repair contract has RM 89mil outstanding contract value over the next 2 years, whilst they are in negotiation and discussions with potential customers from the O&G and resources sectors.

- Land logistics is also picking up along with the Sarawak economy (did I mention SYGROUP is mainly based in Sarawak as well?). And I think the management had good foresight for the acquisition of majority stake in Mewah Exim around middle of 2023, which mainly operates in Johor.

- Industrial gases should also continue to remain resilient, and is affected by the industrial activity so more activity = more business and vice versa.

I attach a few excerpts from news, media, and other documents which make my up sources on this.

Some risks I can think of:
- As with most logistics companies, their business follows along with economic activity.
- Geopolitical tensions could negatively impact them.
- Somehow, their shipping segment had still declined last qtr, even though Harbour's had already rebounded. I am still trying to understand why.
- General execution risk which is relatively higher for marine sectors.

Good luck!

Cabotage Policy for Sarawak to be Reinstated

For those who didn’t know, the cabotage policy was liberalized in 2017, thereby allowing in a lot of foreign competitors in the shipping market of Malaysia at the expense of the local players who didn’t have the size, scale, or route coverage to compete. This had impacted the profitability of many of the Sarawakian operators—such as $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) and Shin Yang group $SYSCORP / 5173 (SHIN YANG SHIPPING CORPORATION BERHAD), amongst others.

Early this month, Anthony Loke announced that the Cabinet had agreed to reinstate the cabotage policy for Sarawak, at the State’s request. This is expected to benefit the local shipping industry and related services.

Sarawak’s Transport Minister Dato Sri Lee explained that any goods and passengers from any part of Malaysia, including exclusive zones, shall only be done by ships registered in Malaysia with valid Domestic Shipping licenses. Interestingly, there are no changes to Sabah’s cabotage policy. This tells me that it is likely to more impact Sarawak’s routes than Malaysia as a whole.

This is not really surprising to me, as I have written many times about how Sarawak is being very clear and eager to have more autonomy over their own affairs.

This is like how foreign airplanes can only land in International Airports like KLIA, and do not service local routes. Similarly, foreign ships will likely need to unload or transship their cargo in any of the international ports of the country, whereby local ships will then be responsible to transport the goods between the local ports (from other parts of Malaysia to Sarawak and vice versa).

My first thinking is that this would increase the cost of local shipments to other industries and ultimately end consumers. However, according to the Minister, it will not. Well, it’s not like the cost of goods at East Malaysia had come down since 2017, so maybe they are right. I shall reserve any opinions on this matter.

Regardless, removing competition is definitely beneficial to companies operating in this space. For context, we can see how negatively Harbour’s shipping segment was impacted in FY 2018 when the cabotage policy was first removed. Now that the reversed had happened, I am interested to see how much, if any, they can benefit.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

OTHERSHARBOUR-LINK GROUP BERHAD
- Incorporation of sub-subsidiary company - "HARBOUR ADVENTURE SDN. BHD.(Registration No. 202401009359 (1555209-U))

$HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) – Some Signs of Optimism Sprouting

Harbour just released their Q2 results, and it was slightly up QoQ. However, looking into the details, we can see the shipping segment actually reporting a strong rebound in the recent quarter and the integrated logistics segment is also doing well after paying out the year-end bonuses. Let’s just go through some quick points from the QR:

1. Gross profit at RM 44.8mil, with GPM of around 19%. Net Profit is RM 21.7mil with RM 17.4m as PATAMI and RM 4.4m as Non-controlling interests.

2. Cash balance now rises to ~RM 492mil, with total borrowings of RM 45.6mil. Net cash of RM 446mil (up from RM 425mil previously). Even if you take out other current assets (mostly prepayments which effectively makes them cash but can be a bit gray) the net cash position is still around RM 412m. For reference, market cap is around RM 480mil +-.

3. NOCF is about RM 60mil, with RM 13mil of capex thus leaving FCF of around RM 47mil in 2 quarters. Specifically, this quarter had NOCF of around RM 20mil and FCF of about RM 15mil.

4. Another 3 sen dividend is declared, which is more than supported by core earnings and cash flow. For now, the company has yet to dip into their cash hoard and the net cash-ness has only continued to increase.

5. Surprisingly to me, their machineries segment has performed well due to higher margins in their servicing and spare parts business.

6. Notably, shipping segment rebounded substantially as the year end festive season increased demand and volume for shipping. Revenue increased by 22% but PAT increased by 50% with higher profit margins. This implies that freight rates had actually increased QoQ.

7. Integrated logistics segment also performs well, albeit PAT took a hit due to them paying out their year end bonuses to the staff.

8. The prospects section seemed markedly more optimistic compared to the previous quarters, and the management anticipates an increase in volume after CNY. Domestic trades have stabilized too with less correction, and their agency business remains active and consistent. For the first time in a while, management has turned positive again for the upcoming quarter’s performance.

9. For the integrated logistics division, business remains consistent and again the management guided to be favourable in the coming quarters. They are increasing their fleet to handle more deliveries; and they are seeing an increased demand due to more activities in the O&G sectors.

10. Machinery and Engineering and Construction divisions are also expected to be more active and management also guided that they expect to deliver favourable results in the coming quarters.

If you’ve been following HARBOUR for a while, you know that the management has been having a cautious tone and saying that the performance is expected to decline for the past year or so. However, this is the first QR where the management’s tone has started to turn more positive and it’s encouraging to see the improving numbers. As usual, logistics is the blood of the economy and the performance of logistics companies generally act as a leading indicator for the health of the economy. Bearing in mind that CNY tends to be a low period with many major factories slowing down for the holiday (most people will frontload shipments at the end of the year to target sales for Christmas, New Year’s, and CNY all at once); a number of tailwinds and headwinds are happening at the same time during this period; it would be interesting to see how HARBOUR will perform in the upcoming quarter (Jan-Mar).

While waiting, the dividends are reasonably good and their large cash hoard should protect any extreme downside. Extra bonus if they decide to declare a special dividend, but it’s best not to expect that for now as no indication was ever made for this.

HARBOUR - Notice of Book Closure

First Interim Dividend

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

explosion soon since both main routes are under attack? $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) $SYSCORP / 5173 (SHIN YANG SHIPPING CORPORATION BERHAD)

a piece on $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) Taken from Hong Leong's Telegram Channel. I normally do not pay close attention to these kind of trading ideas, but it's interesting to see this undercovered company get some coverage. Just sharing below for info:

"HLIB Retail Research – 16 Jan – Bullish Tracker

HARBOUR (2062): Main Market, Transportation & Logistics Services

Consistently profitable since its listing Headquartered in Bintulu (Sarawak) and listed in Jan 2004, HARBOUR is a leading, shipping, marine and integrated logistics services provider, as well as engineering & construction contractors for O&G and power industries locally and regionally. It has been profitable since its listing in 2004.

Likely to benefit from a surge in container freight rates. HARBOUR’s shipping and marine segment is poised to benefit from the global trend of higher container freight rates, the highest since Sep 2022 (source: Trading Economics-Containerized Freight Index). In 6/FY23, the shipping and marine segment contributed ~60% to revenue and 70% to PBT.

Solid balance sheet and undemanding valuations. As at Sep 2023, HARBOUR stayed in a net cash position of RM224m or RM0.57/share. The group is currently trading at a trailing 3.7x P/E (vs peers 10x) and P/BV of 0.62x (peers: 0.72x).

A good proxy to the buoyant Sarawak economy. With the economic activity in Sarawak expected to remain promising moving forward given the government’s ambitious initiatives.

Bullish downtrend line breakout and a strong close above immediate hurdle near 1.21 could spur greater upside towards 1.28-1.35

✅Current price: RM1.18
✅Entry: RM1.13-1.16-1.19
✅Resistance: RM1.21-1.28-1.35
✅Cut loss: RM1.12
✅Latest BVPS: RM1.90 (0.62x P/B)
✅Trailing EPS: 32sen (trailing P/E: 3.7x)
✅FY6/2023 DPS 6 sen (5.1% DY)
✅Risk profile: Low"

****

My thought is how did they calculate net cash of RM 224mil? It should be more towards RM 400+mil. They probably didn't take the "investments" as cash-- in reality the RM 175mil in investments are MMF and FD.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

@terence775 OCK may not have substantial finance cost savings yet as you can't just pay off all your loans at one go (early settlement). Don't be surprised if the finance cost is still high, but it should come down in the coming months. I heard they got another DC contract, but let's see whether this is true or not.

On $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) , I have contacted them and I will give you a tip: freight rates are going up, to a lesser extent as at end December and early January, in this part of the world. You are right. Very soon their net cash will be higher than their market cap unless market raises their valuation.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY

Quarter Reports that I will be looking out for pt 4 and 5: $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) and $OCK / 0172 (OCK GROUP BERHAD)

I have written a lot on these 2 companies already, so anyone who wants to have some background reading can just scroll back and read my posts on the respective company pages. So that I don't appear to be trying to push these stocks or anything, I'll just briefly note what I will be paying special focus on in the QR next month.

For Harbour:
1) Growth in cash balance.
2) Stabilization of profit numbers.
3) Management's prospects
4) Impact of the red sea and panama routes on our intra asian routes. (indirectly).

For OCK:

1) Finance cost savings
2) collection of receivables
3) 5G contract replenishment and more data centre contracts
4) clarity on Indonesia's new policy for managed services.
5) Maiden towerco contribution from Laos

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - SAMARANG UCITS - SAMARANG ASIAN PROSPERITY