Harbour-link Group Bhd (+ve)

HARBOUR (Fundamental: 1.7/3, Valuation: 1.8/3), an integrated logistics provider, saw its share price surge 11% in just two days to close at RM1.72. 

In FYJune14, the Shipping and Marine Services segment contributed 51% of Harbour’s revenue, followed by the Logistics Services and Equipment Rental segment with 32.2%. The Engineering Works and Property Development segments made up the remainder. 

Harbour’s revenue increased from RM357.1 million in FY11 to RM457.6 million in FY14. Pre-tax profit (PBT) mirrored this trend, rising from RM20.2 million to RM51 million over the same period, save for the drop to RM17.6 million in FY13, due to one-off goodwill impairment of RM25.6 million. 

For 1HFY15, revenue increased 9% y-o-y to RM265 million, while PBT rose 5.8% to RM34.6 million. 

The stock is trading at 1.20 times book, with trailing 12-month P/E of 7.22 times. Earnings growth since FY13 has also pared the company’s borrowings from 54% to a marginal 0.98%. 

This article first appeared in The Edge Financial Daily, on March 4, 2015.