Suria Capital – challenging port operations
You may think that being a privatized port operator for the whole of Sabah would make Suria Capital a company with good returns. Unfortunately over the past 12 years, the company only achieved an average ROE of 6%.
In fact quite a substantial part of its profits came from non-port operations such as property and investments.
I think this is because the economic activities in Sabah is not as developed as those in Peninsular Malaysia. While it is a growing economy and it may some time before we see
Suria Capital benefiting from this.
Moral of the story? This is really a stock for the very long-term investor at the current market price.
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