As for HLG’s property segment, the research team said, its PBT remained low at RM0.3 million as it has yet to launch its Kidurong Gateway (Phase 3).
KUCHING: Harbour-Link Group Bhd’s (HLG) prospects could be further supported by several factors including higher project cargo activity at Samalaju Industrial Park, and the construction of Bintulu Port Supply Base, analysts observed.
Following the announcement of HLG’s fourth quarter of the financial year 2018 (4QFY18) results, the research team of Maybank Investment Bank Bhd (Maybank IB Research) pointed out that its 4QFY18 core net profit of RM11 million (a 2.4-folds quarter-on-quarter increase, 21 per cent year-on-year increase) brought FY18 core net profit to RM34 million (up 28 per cent y-o-y), which is within the research team’s expectations.
It noted that HLG’s 4QFY18 profit before tax (PBT) was flattish y-o-y but jumped 77 per cent q-o-q as its logistics’ PBT jumped 2.4-folds q-o-q to RM11 million (62 per cent of group’s total PBT in 4QFY18) due to the completion of one project cargo in POIC Sabah (which saw the delivery of two gantry cranes).
Aside from that, Maybank IB Research also noted that HLG’s shipping PBT was better by four per cent q-o-q given the higher cargo volume handled before the Gawai season while its engineering’s PBT also rose substantially (up 2.7-folds q-o-q) as most of the contracts are at the tail end of the projects.
As for HLG’s property segment, the research team said, its PBT remained low at RM0.3 million as it has yet to launch its Kidurong Gateway (Phase 3).
Looking forward, Maybank IB Research opined: “We expect HLG to benefit from the higher project cargo activity at Samalaju Industrial Park, whereby existing manufacturers are raising production and some new manufacturers are looking to commence the construction of their factories.
“Additionally, the construction of Bintulu Port Supply Base is targeted to complete by end-2019 and HLG may help with the logistics requirements.”
All in, it pegged a ‘buy’ call on the stock.