Wednesday, 12 September 2012

Shin Yang Shipping Corp- On Expansion Mode


hin Yang Shipping Corporation (SYSCorp) is well-positioned to benefit from the busy transportation route between East and West Malaysia. It has expanded to the Middle East by entering into joint ventures with local partners. Having secured an order book of 36 vessels worth RM800.6m, the company’s growth outlook is positive. SYSCorp has also acquired eight container vessels from Swee Joo to expand its shipping routes.
Venturing beyond borders. A part of Shin Yang Group, SYSCorp is involved in shipping and shipbuilding. It was listed on Bursa Malaysia‟s main market on 23 June 2010, with an IPO market cap of RM1.32bn. Its shipping divisions have a total of 297
vessels and a total gross registered tonnage of 460,100 tonnes. The company has expanded to the Middle East by entering into joint ventures with several companies in Qatar, Sharjah, Abu Dhabi and Dubai. Its shipbuilding division has an orderbook to build 36 vessels worth RM800.6m, which should keep it busy for the next two years.
Consistent business growth. Apart from the vessels contract, SYSCorp has also secured 7.7m tonnes of aggregate in UAE with Steven Rock LLC and inked a 20-year contract with CMS Cement SB to transport cement. The company has new shipping routes for its container vessels, transporting construction materials and household goods to China, Bangkok and Penang. To date, it has 18 existing container vessels. Of this, six will service routes between Peninsular Malaysia and Borneo; meanwhile, two vessels are dedicated to intra-Asia (including China) routes but are not yet in operation as some renovation needs to be done to cater for longer journeys.
Opportunities from SCORE. The extensive need to transport in- and out-bound raw materials to and from the SCORE region will definitely present positive opportunities for SYSCorp. Aside from that, Samalaju Port‟s construction works offer SYSCorp opportunities to tap into the business of transporting raw materials from Bintulu Port to Samalaju Industrial Park. As such, we think SYSCorp may be able to achieve new „high scores, thanks to its strong presence in the corridor.
Source: OSK

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