Age of Discovery 2.0: With the return of Taiwan's top three containers, will Malaysian stocks follow?

HarryTeo wrote a column · May 22, 2024 22:30

In 2021, the price of shipping 🚢 skyrocketed, and it was hard to find a container. There was Malaysia's Glove 🧤 frenzy in 2020, and Taiwan also had the Age of Discovery in 2021. The three major shipping companies, Evergreen Shipping, Wanhai, and Yangming, skyrocketed 10-20 times. Meanwhile, Malaysia's HARBOUR also broke through a new high of RM1.73 in September 2021, and the single-day limit was up 30% on September 29, 2021.

⚠️ Container shipping stocks are cyclical stocks. They can only be in the short to medium term, not suitable for the long term ⚠️⚠️

Age of Discovery 2.0: With the return of Taiwan's top three containers, will Malaysian stocks follow?

Beginning in April, freight rates on European and American routes have been rising steadily, leading to a sharp rise in demand for containers in China and Taiwan. There are many factors that have caused the increase in freight rates 📈. One of them is that shipping companies are taking advantage of this opportunity 🈹️ and there is also talk of a wave of chives.

The picture above shows the stock price trends of Taiwan's Sanjiong, China's COSCO Sea & Air, and Malaysia's HARBOUR. Taiwan's Q1 has been released, and Q2 is expected to be better. Meanwhile, the Malaysian stock company HARBOUR is still awaiting Q1 results, and its counterpart SYGROUP has been trending very well over the past month.

$SYGROUP (5173.MY)$

The chart above shows the stock price trend over the past 6 months.

At the end of August last year, the Moo Moo community shared that Harbor's cash flow was very strong. At the time, the stock price was in the RM1.20 range. Since the Age of Discovery in 2021, HARBOUR has captured that round of wealth, cash has maintained annual growth, and freight rates have entered a downward cycle, and its turnover has also been higher than before the pandemic.

$HARBOUR (2062.MY)$

Looking at the current global shipping environment, although HARBOUR is mainly a local and Asian route, its performance will also benefit in the next 1-2 quarters. The performance outlook announced in February has begun to be optimistic and positive, much better than the November outlook. Assuming that the May performance outlook continues to improve and in line with rising freight rates 📈, HARBOUR can recover 2.0 in this era of great navigation.

With the company's current cash level, paying a special dividend can better unleash the company's value, and the performance will be followed up if there is an opportunity after the results are released.

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JOKER555 :

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Jensenlpool : Any container freights rate chart that is relevant to Harbour Link that we can track & estimate for it’s coming earnings?

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Zoozoo333 : I just sold all my harbour recently. 🥹

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HarryTeo

投资座右铭：价值为主，技术为辅，心态之上在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。

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