Harbour-Link’s market capitalisation balloons to RM320mil
KUCHING: Harbour-Link Group Bhd’s market capitalisation has ballooned to some RM320mil as its share price maintained the uptrend.
Year-to-date, the Bintulu-based total logistics provider has more than doubled from last year’s close of 86 sen per share when it soared to an intra-day high of RM1.79 on Tuesday, the level last seen 10 years ago.
Harbour-Link, the best performer among Sarawak-based stocks this year, is seen by a local research house as a beneficiary of the development in Sarawak Corridor of Renewable Energy (SCORE), Samalaju Port and the Refinery and Petrochemical Integrated Development (Rapid) project in Johor in the near term.
Kenanga Research said Harbour-Link’s logistics business was well poised to benefit from an increase in cargo and trade volume with the completion of the Samalaju Port in the near term and heightened economic activities, including in SCORE.
Samalaju’s interim port facilities are expected to be operational in weeks.
The group’s shipping services range from ship chartering to containerisation, bunkering and marine support while it also provides a full range of logistics services, covering land transportation, freight forwarding, warehousing as well as equipment leasing and rental services.
Harbour-Link’s other business is to provide engineering, procurement, construction and commissioning services, and according to Kenanga Research, the company could potentially gain from Rapid as more oil and gas contracts were expected to be rolled out.
The research house said the group had a current order book of RM50mil and a tenderbook of RM1bil.
The group has diversified into property development in Bintulu and has launched an industrial/shoplot project worth RM120mil.
Kenanga Research said the project had recorded a 60% take-up rate.
Prior to the run-up of land prices, the group acquired about 53ha of industrial land adjacent to Bintulu Port.
Kenanga Research said the estimated gross development value of the land into an industrial/commercial township was around RM1bil.
The research house has anticipated Harbour-Link group to stage a strong recovery in earnings.
It has a trading buy on the stock with a target price of RM2 per share.