Wednesday, June 23, 2010

Shin Yang eyes 10-15pc revenue growth

Business Times Published: 2010/06/23

Shin Yang Shipping Corp Bhd, which made its debut on the main market of Bursa Malaysia today, is looking at a 10 to 15 per cent revenue growth for the financial year ending June 30, 2011.

Its chief financial officer (CFO) Richard Ling said the forecast was made on the back of the completion of seven new vessels, the expansion of its existing shipyard in Sarawak and the building of a new one in the United Arab Emirates (UAE).

Shin Yang registered a net profit of RM101.7 million on the back of revenue of RM673.5 million, for the financial year ended June 30, 2009.

"We are looking at a 10-15 per cent growth in revenue during the financial year. Of the seven new vessels we plan to build, three will be completed in the financial year," he told reporters after the listing ceremony in Kuala Lumpur today.

Shin Yang, a Miri-based company which made billions from timber concessions, opened at a one sen discount at RM1.09 against its initial public offering (IPO) of RM1.10, with 120,000 shares traded.

The stock climbed to RM1.11 from the IPO price of RM1.10 at close.

The proceeds of RM190 million raised from the listing will be used mainly to finance the construction of the seven new vessels to tap the growth demand, to enhance shipbuilding facilities in Sarawak and also build the shipyard in the UAE.

The country's biggest shipping operator, with operations in Malaysia and the Middle East, runs a fleet of 245 vessels with total gross register tonnage of about 300,000 tonnes.

Group managing director, Ling Chiong Sing said Shin Yang was expanding its shipyard building facilities in Miri and the related works, would be completed in the first quarter of next year.

On the new shipyard in Hulayla Industrial Park, Ras Al Khaimah (RAK)in the UAE, Ling said the facility is expected to be completed and operational by year-end.

"We have 54 operational vessels in the Gulf region, so we need a ship repairing yard.

"We foresee growing demand for medium-sized vessels. There is also a strong need for a repair yard in the UAE to meet the requirements of repair and maintenance of vessels," Ling said.

Shin Yang has a presence in the UAE, Qatar and Bahrain. The company is also looking forward to being in Kuwait.

"We are confident that our listing will serve to enhance the profile of Shin Yang in shipping and shipbuilding activities and further strengthen our foothold in the sectors," Ling stated. -- Bernama

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