Do you notice that Sarawak-based companies are making a good run recently?

Sarawak-based companies like CMSB,ZECON and SEALINK (The counter that we cover yesterday) are having a great surge lately. We believe this is because of the SARAWAK state election "SOON" as per article below create the buying interest on this.

For a starter,  Shin Yang Shipping Corporation Berhad is engaged in :

(1) Construction, shipping, real estate, plantations, quarrying, and other small business activities in Malaysia and internationally.

(2) The company is also involved in shipbuilding, ship repairing, marine engineering, ship structures, ship conversion, engineering and offshore structure fabrication, and domestic and international shipping; property development, building construction, and civil engineering works, such as roads, bridges, and marine structures construction work.

1. MORE ECONOMY SECTOR IS OPEN NOW, RELATED SERVICES LIKE SHIP CHARTERING ACTIVITIES SHOULD BE PICKING UP

We believe with more economy sector is open now, those logistic and ship chartering activities will be picking up. That is one of the reason SEALINK have a good run yesterday. 

Please be reminded again that SYSCORP and SEALINK is in a same sector with a same sarawak based company.

SEALINK

SYSCORP

2. Sawak to continue infra development as short term post Covid 19 plan

The Sarawak government will continue with the implementation of its infrastructure projects as a short-term approach to the gradual reopening of its economy, once they are given the green light from the federal government.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said these projects would include the Sarawak Pan Borneo Highway costing nearly RM30 billion, as well as bridges and road constructions, public utilities and rural transformation programmes

If you can see, the above sector which benefit from the Sarawak infra development all suit with the SYSCORP's business activity as per picture below :

2. HUGE PILE COMPANY WITH RM100millions cash in bank and NTA 81sen

Refer to the quarter report released recently, SYSCORP actually is an UNDERVALUED company.

Total cash in BANK amounted RM100millions while its NTA is hovering at 81sen.

3. Technical Analysis’s view

From the daily chart’s view, SYSCORP just make a fresh breakout at 19sen yesterday.

And the MACD is pointing upwards with all the indicator shows POSITIVE momentum which will create more upside.

CONCLUSION

Considering all the above, I opine that current price for SYSCORP is attractive due to below:

1) SARAWAK based company which will benefit from the INFRA development plan announced by State government recently.

2) With more economy sector is open now, shipping activity will be picking up

3) HUGE PILE COMPANY WITH RM100millions cash in bank and NTA 81sen

LET’S SEE HOW THE SHARE PRICE MOVEMENT IN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.

Disclaimer : The above opinion is never intended to be a BUY CALL whatsoever. I am sharing my observations ONLY based on fundamental; past history; current trading pattern; charts etc. Please make your own informed decision before buying this share or whatever share for that matter.

BURSAMASTER