This article first appeared in The Edge Financial Daily on March 22, 2018

Shin Yang Shipping Corp Bhd (-ve)

SHARES in Shin Yang Shipping Corp Bhd (fundamental: 0.85/3, valuation: 1.5/3) also triggered our proprietary momentum algorithm yesterday for the first time this year.

The stock closed 20% or five sen higher at 30 sen, after 39.9 million shares were traded — a huge jump over the counter’s 200-day average of 315,892 shares.

The company is primarily involved in shipping loose bulk and container cargoes.

In its second quarter ended Dec 31, 2017 (2QFY18), net profit rose more than threefold to RM8.46 million from RM2.48 million in the previous year on higher operating profit.

The group said the rise in profitability during the quarter was mainly due to the improvement of shipping profit margin in container shipping and international shipping operation segments. But quarterly revenue declined 13% to RM139.92 million from RM161.69 million a year ago, which it blamed on lower shipping segment contribution (down 15.6%), mainly due to lower volume carried from United Arab Emirates shipment operations in the current quarter.

In the cumulative first half of FY18, the group’s net profit jumped seven times to RM14.31 million from RM1.86 million compared with the previous year, though revenue fell 8% to RM270.95 million from RM292.96 million a year ago. While Shin Yang noted that the shipping industry continues to remain challenging, it is positive about the recent stablility in crude oil price going forward.