HARBOUR-LINK GROUP BHD (+ve)
HARBOUR (Fundamental: 1.7/3, Valuation: 1.8/3) saw a marked increase in volume compared to its daily average, with more than 400,000 shares traded yesterday. Its share price rose 1.1% to RM1.79.

It is likely seen as a beneficiary of mega development plans, including the SCORE (Sarawak Corridor of Renewable Energy) initiative and RAPID (Refinery and Petrochemical Integrated Development) project, which will boost demand for its cargo transportation services and rental for heavy machineries.

To recap, the Bintulu-based company provides shipping and marine services, logistic services and equipment rental, as well as engineering and construction services. It also has a mixed development project near Bintulu Port.

For 1HFYJun2015, net profit jumped 58.5% y-y to RM24.2 million, bolstered by higher project cargo volume and higher machinery rental income. Gearing is marginal at less than 1%. 

The stock is trading at a trailing 12-month P/E of 7.8 times and 1.3 times book value. Dividends totalled 2.5 sen in FY14, giving a yield of 1.4%.

This article first appeared in The Edge Financial Daily, on May 12, 2015.