KUALA LUMPUR (Nov 29): Shipping company Shin Yang Group Bhd (KL:SYGROUP) reported a 19.6% increase in net profit for the July-September period on improved profit margin as well as increased shipment volume and vessel deliveries for ship repairs.
Net profit for the first quarter ended Sept 30, 2024 (1QFY2025) stood at RM31.16 million or 2.75 sen per share, from RM26.05 million or 2.3 sen per share a year ago, its bourse filing showed on Friday.
Quarterly revenue grew by 13.25% year-on-year to RM251.88 million, from RM222.41 million, driven by improved income recognised from its shipbuilding and ship repair segments, as well as a stable fleet load factor in the shipping segment.
No dividend was declared for the latest quarter.
Prospects for the shipping industry remain challenging, the group said, with the Baltic Dry Index, which tracks the cost of shipping bulk dry goods, declining as crude oil prices stabilised recently.
Nevertheless, Shin Yang said it is navigating these challenges by focusing on market-driven routes based on fleet load utilisation.
The group is also aiming to take advantage of the steady and healthy increase in new shipbuilding offers for the replenishment of ageing offshore support vessels (OSV), and address the aggressive operating expenditure for ship repair and maintenance.
Shin Yang also plans to expand its investments in container depots and haulage services, including warehousing facilities, to capture growing demand for integrated logistics services.
Shin Yang’s shares closed one sen or 1.12% higher to 90 sen on Friday, bringing the group a market capitalisation of RM1.08 billion. The stock has climbed 44% since the start of this year.
* Credit news article from:https://theedgemalaysia.com/node/736041