Syscorp - Rising with Cheap Oil
While the cheaper oil prices is definitely a double blow to the high capex nature of the oil and gas industry, it would be another part of the story for industry that are using high amount of fuel and oil for their daily business activities.
Of course, the easiest to come into mind will be airlines industry, but the party will not be completed without the shipping companies celebrating as well. With this in line, SYSCORP is a favorite target after seeing it's subdue prices prior to the previous sell down with much upper growth for capital appreciation in the coming days.
Let's have a quick look at SYSCORP price chart.
SYSCORP had been consolidating at a wide range around RM 0.50. While most of the accumulation of the shares is being done above the price of RM 0.55 and RM 0.65 back then at July, SYSCORP will be seeing a better come back with a stronger volume in the coming days. A quick outlook will place SYSCORP into challenging RM 0.65 before breaking into higher grounds.
SYCORP - Greater with cheaper oil
SYSCORP had been known for it's ship building, maintenance, repair and overhaul, shipyard building and also shipping services. SYSCORP is currently the only logistic company that had the greatest exposure in the booming economy in the Samalaju industrial area in Sarawak.
A quick recap, SYSCORP had already started their services in the Samalaju Port with 2 barge berths and a roll-on, roll-off ramp. The facilities is able to cater for 450,000 tonnes of cargo for this year. While doing so, SYSCORP had secured 2 major building packages for the port project, propelling them to have the first mover advantage at the port, which will be expected to be fully operational by 2016.
SYSCORP
also provide freight forwarding services in Indonesia through a 49%
stake in freight forwarder PT Baruna Adipras for a good
cut at RM 1.35 million. Currently, SYSCORP is seeing commodities such as
animal feeds and related food products trading between Indonesian
ports. However, SYSCORP will move into the iron ore trade which will be
more lucrative. With the sliding oil prices, it is significant enough to see major cost saving in the daily operation of the shipping activities. Shipping companies are benefiting from the cheaper oil that will put a stronger quarterly in the coming days.
1. Harrisons Holdings (M) Berhad (Harison - 5008)
2. MISC Berhad (MISC - 3816)
3. TASCO Berhad (Tasco - 5140)
While at the Airlines Industry, AirAsia had definitely reflect the opportunity from the falling oil prices in their share price.
SYSCORP had seen growing demand in the freight forwarding sector, ship building as well as a growing demand in the maintenance division.
With a strong growing revenue in the freight forwarding division, growing business in shipbuilding and ship repairs and maintenance, coupled with a series of cheaper oil, SYSCORP is killing 4 birds with a stone now.
I believe SYSCORP will be a good company to be vested in at the current level. With a strong growing revenue, almost 40% towards is NTA, SYSCORP will be coming under investment house radar in the coming days after it's huge exposure towards the booming economy of Samalaju and the growing demand of MRO in shipping.
Reference
Syscorp - Rising Sea Dragon
Syscorp - Sizzling On Samalaju
Boarding SYSCORP? You decide.
Bone's short term TP : RM 0.65 (Maintained)
Cheers and have a nice day
Regards,
Bone
Bonescythe Stock Watch
http://bonescythe.blogspot.com/
