KUCHING: Shin Yang Group Bhd has more than doubled its group net profit to RM42.42 million in the second quarter ended December 31, 2024 (FY2Q2025), up from RM19.52 million in 2Q2024. This surge was bolstered by the maiden earnings contribution from its newly acquired automotive business.
Group revenue soared to RM611 million from RM235.3 million during the same period, driving the company’s earnings per share to 3.77 sen from 1.72 sen.
The company has declared an interim dividend of 3 sen per share.
In the current quarter under review, the automotive segment generated revenue of RM359.9 million and a pre-tax profit of RM25.22 million.
Shin Yang expanded into the automotive business by acquiring four subsidiaries — Boulevard Motor Sdn Bhd, Boulevard Motor (Sabah) Sdn Bhd, Boulevard Motor (Labuan) Sdn Bhd, and Boulevard Jaya Sdn Bhd — for a total of RM144.5 million on October 1, 2024.
The Miri-based company, whose core business is in shipping and shipbuilding, now owns 100 per cent of the equity interest in Boulevard Jaya and a 60 per cent stake in the other three Boulevard Motor companies, which are Toyota car dealerships.
In 2Q2025, Shin Yang’s shipping segment generated lower revenue of RM169.44 million (2Q2024: RM177.63 million), but operational profits surged to RM26.84 million (RM14.92 million). Meanwhile, the shipbuilding, ship repair, and metal fabrication segment expanded its revenue to RM50 million (RM30.9 million), with operational profits increasing to RM4.42 million (RM3.55 million).
The service providers segment recorded improved revenue of RM22.36 million (RM21.95 million) but saw lower operational profits of RM3.25 million (RM4.98 million). Similarly, the gas segment posted slightly lower revenue of RM4.34 million (RM4.58 million) and a reduced operational profit of RM556,000 (RM1.35 million).
For the quarter under review, Shin Yang reported a 159.7 per cent jump in group revenue to RM611 million (2Q2024: RM235.3 million) and a 164.8 per cent rise in pre-tax profit to RM57.1 million (RM21.56 million), primarily driven by the newly acquired automotive segment, which contributed RM359.9 million in turnover and RM25.2 million in pre-tax profit.
“In the current quarter, the shipping segment’s revenue stood at RM169.4 million, marking a 4.6 per cent decline from RM177.6 million in the same quarter last year.
“The decrease in revenue was primarily due to the normalisation of freight rates in the shipping segment. However, the increase in pre-tax profit (to RM26.8 million from RM13.93 million) was mainly attributed to improved load factors and cargo volume in the container segment, along with a RM5.0 million gain from the disposal of three vessels,” Shin Yang stated in its financial notes.
The shipbuilding and ship repair segment reported a 74.9 per cent increase in revenue to RM54 million (RM30.9 million), mainly driven by higher volumes of ship repair, repowering, and refitting services for external clients. The segment’s pre-tax profit rose 30.7 per cent to RM3.72 million (RM2.85 million), supported by improved profit margins and increased vessel deliveries through repair and maintenance activities.
Shin Yang noted that while the service providers segment saw a 1.8 per cent rise in revenue to RM22.36 million (RM21.95 million), its pre-tax profit declined to RM3.06 million (RM4.75 million) due to a seasonal reduction in commodity cargo volumes in the transport sector.
Conversely, the gas segment’s revenue slipped by 5.3 per cent to RM4.34 million (RM4.58 million), impacting its pre-tax profit, which dropped to RM555,000 (RM1.35 million) due to reduced gas sales in export markets and plant maintenance work carried out during the quarter.
The 2Q2025 financial results marked a significant improvement over the immediate preceding quarter (1Q2025), when group revenue stood at RM251.88 million (2Q2025: RM611 million), an increase of 142.6 per cent. Meanwhile, pre-tax profit rose 63.5 per cent to RM57 million (RM34.91 million).
For the first six months of FY2025 (6M2025), Shin Yang recorded strong earnings, with group net profit rising to RM73.58 million (6M2024: RM45.57 million), in line with a sharp jump in group revenue to RM862.9 million (RM457.7 million).
Commenting on the outlook for the financial year, Shin Yang said the shipping industry continues to face challenges related to competition and demand, particularly given recent stability in crude oil prices and a decline in the Baltic Dry Index.
“Nevertheless, the group is strategically positioned to navigate these challenges by focusing on market-driven routes and optimising fleet load utilisation. We remain confident in the stability of our domestic, coastal, and container shipping operations, supported by consistent container volumes.
“To capitalise on emerging opportunities, the group is actively enhancing operational efficiency, fleet management, and route optimisation,” the company added.
For its shipbuilding and ship repair business, Shin Yang said it is implementing initiatives to improve ship repair operations and cater to niche market demands.
“With the gradual recovery of charter rates in the offshore supply vessel (OSV) segment and the current gap in new OSV orders over the past few years, along with the recycling of aging OSVs, we foresee steady and healthy growth in new shipbuilding opportunities. This will help replenish the OSV fleet and address the increasing operational expenditure for ship repair and maintenance.”
In its logistics business, Shin Yang plans to expand its investments in container depots, haulage services, and warehouse facilities to capture new business opportunities driven by rising demand for integrated logistics solutions.
For its newly acquired automotive business, the company remains optimistic, citing Toyota’s strong market presence and its position among the top five best-selling car brands in Malaysia.
“This positive outlook is further reinforced by the Malaysian Automotive Association’s upward revision of vehicle sales forecasts to between 756,000 and 780,000 units in 2025, signalling growth opportunities in the automotive sector.”
Despite global economic challenges marked by geopolitical tensions and trade fluctuations, Shin Yang remains confident in achieving sustainable growth in the coming years.
