How long can Age of Discovery 2 go? Let's take a look at what Taiwan's Changrong and Wan Hai say.
Beginning in April, freight rates for European and American routes began to rise, and China's transportation sector began to move somewhat. In May, Taiwan Container Sanxiong's stock price can rise 30-50% in a single month, and the rise in freight charges continues to rise.
The above chart shows the outlook of Evergreen and Wanhai Shipping management. The shortage of capacity in May was more delayed than in April. Moreover, the increase in demand for European and American routes has also driven Asian routes. This era of navigation has also burnt into Asia, including of course Malaysia 🇲🇾.
Among Malaysia's shipping businesses, HARBOUR and SYGROUP both broke through 1-year highs on May 27. Furthermore, the stock prices of FM and TASCO, two transportation-related stocks also broke through 1-year highs last week.
On May 28, HARBOUR results were released. The turnover grew by 17.4% year on year. Although net profit fell by 34.9% year over year, it was mainly due to the year-on-year decline in freight rates, but volume increased. However, the company's net profit QOQ grew by 39%, and the next quarter is expected to be even better.
The business of all divisions of the company is very positive, and the company will spend RM100 mil to buy two shipping container ships in May and June to replace the old ships. What is most rare is that when it comes to the end of the company's outlook, it is rare to be so optimistic when it comes to striving for a better tomorrow.
The company's cash reached a record high, so RM100 mil CAPEX was completely unburdened to buy a ship.
SYGROUP handed over the same results as HARBOUR on May 30, falling 22.7% per year in terms of net profit and 78% growth in QOQ. The outlook is also very positive, and it is expected that the QOQ will continue to grow.
Due to the sharp rise in freight rates from 2021 to 2022, SYGROUP Salted Fish turned over, and the company got rid of net debt and became Net Cash. The net cash for the latest quarter was RM316 mil.
SYGROUP's PE is 6.3, and HARBOUR is 7.43, so the valuation is not expensive. The increase in freight rates began in May, and freight rates in Malaysia also increased at the end of May and June. Margin is expected to increase next quarter. The peak profit period for Malaysian shipping stocks is expected to be Q3, while Q4 depends on global demand for containers.
Therefore, these cyclical stocks need to be followed up from time to time, and we must not hold the mentality of holding them for a long time. Demand is expected to remain strong for the next 3 months. We looked at Taiwan's Sanxiong's performance in July to determine the future investment strategy. Mutual encouragement.
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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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