Good morning.
Today, we feature a note on Harbour-Link Group Berhad in our FundTech Radar – 9th Jan 2018. The company is a leading shipping, marine and integrated logistics provider and also an engineering and construction contractor for oil and gas, and power industries locally, and regionally.
Fundamental Stance
· A good track record over the past 15 years, however, FY17 PATAMI margin declined
· net cash position of RM2.7m (1 sen per share) as at 30 Sept 2017
· average dividend yield about 2% while div. payout has improved to 20.9% in FY17
· Mr. Yong Piaw Soon (Founder & Group MD) is expecting earnings to rebound in FY18
· Shipping and marine segment – A strategic alliance formed with MMC Corp and Shin Yang Shipping was aimed at achieving economies of scale
· *Logistics segment* – the additional warehousing capacity will contribute additional revenue
· *Engineering segment* – recovering Engineering, Procurement, Construction and Commissioning and oil and gas markets
· currently trading at 11.8x 12m trailing P/E (11.7x excl. 1 sen net cash), a 50.5% premium to its 3-year historical average P/E
Technical Front
Resistances: 0.88/1.10/1.35
Supports: 0.775/0.75/0.71
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
9th Jan 2018
Disclaimers: This distribution is by CIMB Investment Bank Berhad in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB makes no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
