Sealink sails towards exciting times

Sealink International Bhd is a counter to look out for.

The counter surged 150% to close at 22 sen on May 14 in the past year.

It hit a 52-week high of 26 sen last October versus a low of 7.5 sen.

The counter recently rose close to 10% higher in the past 5 days.

If you have missed the opportunity to invest in Sealink, they can still bet on the company.

This is because the recent run up may send prices higher to retest its 52-week high and possibly push beyond as well in the coming days.

The company, which also builds and repairs vessels, was among the shipping logistics stocks which traded on Jan 16 morning due to the potential for increased freight rates amidst the Red Sea crisis.

The crisis has disrupted global logistics following Houthi rebel attacks on shipping liners.

On the upside, prices may move towards the historical resistances at 26 sen next.

As it is, vessel owners have regained the appetite to expand for the first time in a decade to cater to rising demand.

Notably, spot daily charter rates (DCR) in Malaysia have yet to fully catch up with other regions despite having recovered to pre-downturn levels.

Recall that in 2022 and 2023, Petronas revised upward its charter rates, which have been largely welcomed.

Petronas has also revised its vessel demand forecast upward by 19% to 397 in 2024, from 333 projected previously.

But Sealink has yet to reverse its nine-year loss-making streak, has posted its best bottom line since FY2014.

The company sees 2024 as a bright year for the industry and is looking forward to secure more new charters.