KUCHING: Shin Yang Group Bhd has reported improving prospects for its shipbuilding and ship repair business as a result of positive developments in the oil & gas (O&G) sector.
The Miri-based company said there is now higher capital expenditure (capex) in the O&G sector, and sustained demand for offshore support vessels (OSVs).
“With the gradual recovery of charter rates in the OSV segment, coupled with encouraging newbuild orders (for vessels), the group maintains a healthy order book and continues to undertake steady ship repair works, including refurbishment of ageing OSVs.
“The group’s established dockyard facilities, technical expertise and longstanding industry relationship position it to capture refurbishment, repowering and newbuild opportunities. Improved dock utilisation and better project cost controls are
expected to support margin recovery as other flows normalise,” Shin Yang added when commenting on the outlook for its shipbuilding and ship repair segment going forward as it released its yearly financial results recently.
The company has changed its financial year to December 31, 2025 from June 30, 2026.
In 4Q2025, the shipbuilding and ship repair segment posted a RM2.48 million (+66.7%) jump in pre-tax profit to RM6.21 million (4Q2024:RM3.72 million) due to improved margins arising from shipbuilding projects despite drop in revenue by RM15.2 million (-28.2%) to RM38.8 million (RM54 million).
Overall, Shin Yang posted lower group net profit of RM36.9 million on revenue of RM606.5 million in 4Q2025,down from RM42.4 million and RM611 million respectively in 4Q2024.Earnings per share fell to 3.23sen from 3.77sen previously.
The automotive segment was the No 1 revenue earner, generating RM359.9 million (4Q2024:RM359.7 million), followed by the shipping segment with sales of RM177.2 million (RM169.4 million), the service providers segment contributed RM28.2 million(RM22.4 million), gas segment RM2.49 million (RM4.34 million) and investment holding segment RM106,000 (RM910,000).
“Overall, the group delivered consistent results for the quarter under review, supported by improved operational efficiency and current (shipping) route enhancement,” said Shin Yang in explanatory notes to its financial results.
In the current quarter, Shin Yang said the four per cent growth in the shipping segment revenue was supported by stable load factors across the group’s shipping operations but the segment reported a 36 per cent drop in group pre-tax profit to RM17.2 million (4Q2024:RM26.8 million) due to vessels docking costs as well as repair costs for chartered vessels.
The automotive segment posted a 40 per cent jump in pre-tax profit to RM35.3 million (RM25.2 million) despite a marginal drop in revenue, thanks to stronger sales margin and operational performance in the current quarter.
Shin Yang ventured into the automotive dealership business in October 2024 via the acquisition of four subsidiaries – Boulevard Motor Sdn Bhd, Boulevard Motor (Sabah) Sdn Bhd, Boulevard Motor (Labuan) Sdn Bhd and Boulevard Jaya Sdn Bhd. These companies are involved in Toyota and Lexus car dealership.
The service providers segment did better as shown by its revenue which rose by 26.3 per cent to RM28.2 million (RM22.4 million), driving the segment pre-tax profit higher at RM3.65 million (RM3.06 million) with the growth driven by higher volume of transportation from logistics support operations and improve profit margin.
The 4Q2025 financial results came in better than the immediate preceding quarter (3Q2025) when group revenue was lower at RM529.5 million (4Q2025:RM606.5 million) and pre-tax profit of RM58.4 million (RM60.6 million).
On a six-month period in 2025, Shin Yang posted higher group net profit of RM80.65 million (6m2026:RM73.58 million) as revenue soared to RM1.135 billion (RM862.9 million).
Going forward, Shin Yang said the group’s shipping operation will continue to be influenced by global fuel price trends, currency exchange rate movements and regional trade activity.
“While freight markets remain competitive and subject to rate volatility, the group’s domestic, coastal, dry bulk and container shipping operations are supported by stable cargo volumes, improved load factors and disciplined fleet deployment.
“With continued optimisation of route planning, fuel efficiency initiatives and tighter vessel scheduling, it is expected that the shipping segment will be able to sustain margins despite market headwinds,” it added.
Shin Yang said the group’s logistics and service support operations are being progressively strengthened to meet increasing demand for integrated maritime and inland logistics solutions.
“Investments in container depots, haulage capabilities and warehousing infrastructure are expected to deepened vertical integration, enhance service reliability and improve cross-selling opportunities between shipping and logistics customers. These initiatives should gradually enhance recurring income streams and operational synergies.”
Shin Yang expects its automotive business to remain a steady contributor to the group’s performance in the new financial year.
“While mindful of external uncertainties, including market volatility and economic conditions, the board (of directors) believes the group is well-positioned to sustain reasonable performance in the near term, supported by operational discipline and a balanced earnings base across its business segments,” said the company.
