HARBOUR (2062) - Harbouring to a Better 2018

Harbouring to a Better 2018

By now, you would have know that I had been sticking to Harbour Link Group Berhad (Harbour - 2062) when it is still 70 cents. Oh yea, that is when nobody is looking at this stock at all while I had been alerting you guys about this cool stock to be a part of your 2018 investment portfolio.

At the current price, some of your question will be could include :
1.) Is Harbour still an attractive investment at the current price ?
2.) Is Harbour able to perform better in 2018 ?

So, I am going to explain a little bit on why I am still being positive on Harbour despite the stock appreciated for more than 10% already.

Firstly, if you had been following me closely, I had noted to you that the prices for container shipping on smaller ship (Those below 3000 TEUs) had been improving, especially those servicing regional area. For the case of Harbour, it is servicing the Malaysia region, with China, India and Hong Kong routes as well. That being said, if you are missing out on this part, you can refer on this previous article that I had wrote in order to see a clearer picture again, especially where container rates are more than 30% up.

As you can see, container shipping rates are recovering slowly. At the current rate, smaller container shipping rates are not looking to back down. In fact, it could be rising further due to several factor.

1.) Globally, the world 7th largest shipping company - Hanjin Shipping, in 2017, is declared bankrupt. This event had remove a huge chunk of the over supply from the container shipping as ship stand stall in the sea pending receivership and liquidation as well.

2.) Locally, the competition is minimized with Hubline exiting the container shipping business in 2015. This will provide lesser competition in pricing as the major provider will be Harbour and Syscorp.

While those are positive news for the sector, this latest news is what you should look carefully.

According to the budget 2018, importation of big items such as aircraft, shipping or oil rigs parts will be exempted from 6% GST is imported by Malaysian registered aviation and shipping company.

For this, Harbour is one of the first party to benefit from this tax exemption in 2018, and will be preparing to handle more big item import into Malaysia as oil and gas sector recover. If you are a business owner looking to import, it will totally make sense to charter Harbour services for the importation of big items good and supply because the logistic fee will save you 6% of GST. Then you will also save on port handling charges as well for those goods.

So now, I need you to think carefully. Do you think Harbour will do better in 2018 ?
I don't know about your answer, I am quite positive on this that Harbour is looking for a better 2018 for sure.

That's your take now.

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