Suria Capital sees RM14.6 mln for 2QFY24

KUCHING (Sept 2): For the second quarter of financial year 2024 (2QFY24), Suria Capital Holdings Berhad (Suria) reported a core profit after tax, amortisation and minority interest (PATAMI) of RM14.6 million, resulting in a total core PATAMI of RM28.7 million for its first half of FY24 (1HFY24).

The 13 per cent year on year (y-o-y) increase in operating revenue in 2QFY24 was largely fueled by an 11.9 per cent y-o-y rise in container throughput, driven by the start of operations at SK Nexilis and Kibing Group痴 plants in 4QFY23.

MIDF Amanah Investment Bank Bhd (MIDF Research) commented that the rise in conventional throughput likely reflects increased bulk oil volume, possibly due to the new oil jetty at Sapangar Bay Oil Terminal (SBOT) beginning operations as anticipated during the reporting quarter.

Core PATAMI saw a nearly fivefold increase due to adjustments in the amortisation of concession assets according to the initial concession period.

“Sequentially, core PATAMI saw a modest rise, primarily driven by the growth in the conventional business,” MIDF Research said.

“We anticipate an improved performance this year, mainly due to the full-year impact of the new foreign direct investments (FDIs) established at Kota Kinabalu Industrial Park (KKIP), which are expected to add around 38,400 TEUs annually to Suria痴 operations.

“We also expect the new oil jetty at SBOT to provide additional support for steady growth in conventional cargo volume.”

MIDF Research’s forecasts show a seven per cent y-o-y rise in container throughput and a three per cent y-o-y increase in conventional throughput for this year.

Notably, through 1HFY24, container and conventional throughput have achieved 50 and 48 per cent of its full-year projections, respectively.

To recap, Suria has entered into a conditional share subscription agreement with DP World. AmInvestment Bank Bhd (AmInvestment Bank) positively viewed the collaboration as Sabah Ports will benefit from DP World痴 global expertise and supply chain network.

The agreement is anticipated to be completed by end-September 2024, subject to the fulfillment of terms and conditions.

“Even so, the key catalyst for Suria would be higher port tariffs, which have been unchanged over the past 35 years (since 1977). The state cabinet has approved the review of tariff rates in 2020, with implementation expected to take place in 2024.

“Assuming a 10 per cent rise in port service rates, we estimate that FY24 net profit could increase by 33 per cent.”