KUALA LUMPUR (July 12): Shares in Shin Yang Group Bhd (KL:SYGROUP) rose to their highest in 20 months on Friday morning, following a proposal by the Ling family behind the shipping company to inject their car dealership business in East Malaysia.
The counter climbed as much as 9.5% or 7.5 sen to 86.5 sen, its highest since November 2022. The stock then pared gains to trade at 85.5 sen at 9.15am, valuing the company at RM1.03 billion on Bursa Malaysia. Trading volume totalled 5.2 million shares so far, more than double the 20-day moving average.
Shares in the Sarawak-based shipbuilder and operator have risen 39% year-to-date and gained 53% in the past one year.
No institutional analysts cover the stock. At 85.5 sen, Shin Yang was trading at 7.84 times its price-earnings ratio, based on its trailing earnings per share of 11 sen, according to Bloomberg data.
The company on Thursday announced a RM144.5 million cash-and-share deal to acquire Boulevard Jaya Sdn Bhd — an authorised dealer of Toyota vehicles in Sarawak and an authorised agent of Lexus vehicles there — and to take up a 60% stake each in three other companies involved in related automotive businesses of Toyota and Lexus vehicles in East Malaysia.
Shin Yang said that the acquisitions aim to diversify the company’s revenue stream and reduce dependency on its current shipping and shipbuilding business, as well as to contribute positively to future earnings.