Q1 2021 operating profit of RM18m which is 6 times higher compared to Q1 2020 eventhough lower number of vessels. If compared to Q4 2020, it increased by RM6m. Given that BDI is favorable, profit for this year is definitely promising. Pls do not misled by the one-off gain in Q1 2020. Exclude this exceptional item, MBC performance is impeccable already. Lets wait for the upcoming quarter.
Remember maybulk only got 5ship only. Which mean the company no business. Mean company business partner very low. Better sell 60sen to wilmar. Either way fire the director boards and give to Singapore management team better
5 ship only. 1 ship rent will only available at year 2022. Another 1 ship rent will only available at year 2023. Very funny lo. That time when the rental ship arrived who know which one will sent for repair.
Parkson... obviously your English damn bad... They have 5 owned ship + 2 charter-in (rent) ship, which "to be return in 2022 and 2023" and not "available in 2022 and 2023". Do your homework and brush up your English please. Very funny lo u.
Yes but the price for renewing the lease will be dependant on bdi at that time, so they may not get the full benefit of the rising bdi (assuming bdi rises). Think they used to have near 20 vessels couple of years back, now it is left with 7 (2 leased). So earnings will not go back to the past level. Also mkt cap is about USD 140m, this means mkt cap per vessel is more than USD 20m/vessel even if we just simply assume the leased ship is owned by them. This is way higher than its peers. Happy to hear any pushback.:)
Why I think Maybulk is a good defensive counter to buy/hold during this period of time.
Investors were selling Maybulk since Baltic Dry Index corrected after hitting its 10-year-high around 3200.
But if we observe carefully, the recent correction of BDI was mainly due to the drop of its largest component which is the capesize index (for the largest dry bulk ships, which tracks cargoes of 1500,000 tonnes & weights 40% in BDI). However, some may not realize that Maybulk in fact does not own any capesize ships, so it certainly won't be directly affected by the down trend of capsize index, other than the general perception of investors (or most of the time, traders) who sell their shares when they see the chart going down.
Many may have overlooked the panamax index (for middle size ships, which tracks cargoes of 60,000-80,000 tones) too. In fact, panamax index rebounded significantly since a week or two and currently going uptrend, almost hitting 3000 points. This will definitely benefits Maybulk panamax fleet, as all the 3 Kamsarmax (the largest & more advanced ships in Panamax family) owned by Maybulk, are relatively more efficient and young (all built in 2018 & 2019) and cover 55% of Maybulk total d.w.t. The higher charter rate for panamax will definitely give significant contributions to its coming financial results.
Maybulk also owns some smaller ships - the supramax which cover ~40% of its fleet total d.w.t. As long as supramax Index continues to maintain at 2000-2500, which is still at the high side range in the nearest 10 years frame, we can almost confirm that Maybulk will see significant raise in its coming yoy as well as qoq results.
Another reason why I give high regards to Maybulk is simply because shipping is amongst the few sectors allowed to operate during this round of MCO 3.0. Even though if lock down extended for another one or two months, Maybulk operation will not be affected much compared to other sectors as dry bulk shipping business is essential and international in nature.
That's why I think Maybulk is a good defensive counter to buy/hold at this juncture of time. Just my two cents. Hope they help.
Good sharing Sharon and agree with you. Those monitoring the fall in BDI should not be worried as it is almost entirely due to the drop in the Capesize Index which accounts for 40% of the BDI. Maybulk does not have any Capesize ships. Kamsarmax (Panamax) and Supramax rates are still holding up high and this is reflecting in the fact that the Maybulk share price is not plunging along with the BDI drop. Q2 results should be noticeably better than Q1.
Most likely the high charter rates can keep steady or increase throughout this year due to 10 years of shipping consolidation in the global markets and the fact that the new builds take 2-3 years to come online.
Exactly Lawman, as investors we always need to look into details... capesize index has nothing to do with Maybulk.. just focus on panamax & supramax indexes will do.. Both are going strong at 10 years high levels..
The Baltic Dry Index rose 2.5% to 2,481 on Wednesday, after ten consecutive sessions of losses, amid supply concerns and despite China’s efforts to limit rising commodity prices. The capesize, which tracks iron ore and coal cargos of 150,000-tonnes, surged 4% to 2,488; and the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and iron ore, advanced 2.4% to 3,065, its highest since May 12. Among smaller vessels, the supramax index rose by 29 points to 2,508, its highest since May 25th. source: Baltic Exchange
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3249 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Parksonguy
537 posts
Posted by Parksonguy > 2021-05-20 11:38 | Report Abuse
5 ships with no other side income. Haiz. Cannot see the company future.