KUCHING: Shin Yang Shipping Corporation Bhd (Syscorp) group net profit has surged by more than four-fold to RM15.1 million for second quarter ended Dec 31, 2021 (Q22021) from RM3.53 million in Q22020, or a jump by RM11.57 million, largely driven by increase in cargo shipment volume and margin, contribution from land transport business and improved performance of ship building activities.
Group revenue expanded to RM217.1 million from RM157.7 million or an increase of RM59.4 million or by about 38 per cent.
Earnings per share improved to 1.29 sen from 0.3 sen previously.
“The increase in revenue was mainly due to the higher revenue generated from the shipping segment and ship repair segment in the current quarter as compared to last preceding quarter.
“The group has expanded its business activities to land transportation in February 2021. This sector has contributed RM11.4 million of revenue to the group in the current quarter.
“The profit before tax in the current quarter was mainly due to the increase of margin and shipment volume in shipping segments on bulk carriers and container sectors, ” Syscorp said in notes to its financial results.
In Q22021, Syscorp posted sharply higher shipping revenue of RM163.6 million (Q22020: RM131.6 million) or increase of 24.3 per cent, pushing the segment’s pre-tax profits to RM12.7 million (RM1.47 million) or up 760.6 per cent.
The shipbuilding, ship repair and metal fabrication segment recorded better performance, with its revenue rising 62.7 per cent to RM40 million (RM24.6 million) and pre-tax profit improved by 19.7 per cent to 1.51 million (RM1.26 million).
“The increase in revenue was mainly due to vessel’s work in progress for external parties to be delivered in the current quarter.”
For the service provider segment, Syscorp said the Q22021 revenue shot up to RM13.3 million (RM1.35 million) or a jump of 884.9 per cent, driving its pre-tax profit higher by 56.4 per cent to RM1.89 million (RM1.21 million). The newly acquired Melinau Transport Sdn Bhd contributed RM11.4 million to group turnover in the current quarter.
However, the investment holding segment saw its pre-tax loss widened to RM155,000 (-RM91,000) despite a margin increase in revenue to RM223,000 (RM215,000).
Over a six-month period in 2021 (6M2021), Syscorp posted sharply higher group net profit of RM26.97 million (6M2020: RM6.49 million) as revenue surged to RM398.2 million (RM295.9 million) or by RM102.3 million.
In 6M2021, the shipping segment saw its revenue grew to RM310.2 million (6M2020: RM248.2 million), driving its operating profit to RM20.3 million (RM5.25 million). The shipbuilding, ship repair & metal fabrication segment recorded significant improvement in revenue to RM60.5 million (RM44.4 million) and drove its segment profit to RM8.47 million (RM5.41 million).
The service provider segment revenue soared to RM27.1 million (RM2.83 million) and turned in a higher profit of RM5.1 million (RM2.83 million).
In the immediate preceding quarter (Q12021), Syscorp recorded group revenue of RM181.1 million (Q22021: RM217.1 million) and pre-tax profit of RM13.4 million (RM15.9 million).
Commenting on prospects, Syscorp said the group is confident in the stability of the domestic, coastal and container shipping operations, which will remain as the engine of growth of the sector.
“The continuous improvement in terms of operational costs management, fleet efficiency and routes enhancement would be an important priority in the next few quarters ahead.”
On the shipbuilding, ship repair and metal fabrication business, Syscorp said the emphasis is on taking steps to aggressively carry out repair and maintenance and fabrication works to meet the requirements of the niche markets from operating expenditures in the oil & gas industry as well as to meet the potential requirements of the resource based sectors.
Meanwhile, Syscorp has redesignated Tan Sri Ling Chiong Ho, 70, as its group executive chairman from non-executive chairman, effective Feb 28, 2022. He is the founder and group executive chairman of the diversified Shin Yang group of companies, which is involved in reforestation, wood-based downstream activities, property development, infrastructure projects and public toll concession, oil palm plantation, public transportation, hypermarkets and hotel business.
Chiong Ho’s son Datuk Ling Lu Kiong, 41, has been appointed Syscorp executive vice chairman. Lu Kiong is currently Shin Yang group managing director.
