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The
recent migration of Halim Mazmin Bhd,
to the Main Board of the Kuala
Lumpur Stock Exchange is expected to
strengthen its expansion plan
notably by escalating its
involvement in international trade.
The
shipping company, whose initial
growth came mainly from its
engagement in the carriage of
refined petroleum products in the
domestic waters, has set its eyes
far and wide in acquiring more
containerships and dry bulkers as
part of its long-term strategy for
growth.
Its
executive chairman Tan Sri Halim
Mohammad said the focus of the
company’s expansion would center
on container and bulk carriers which
presently account for 85 per cent of
the company’s revenue.
Although
he declined to state the size of the
company’s future acquisitions,
Halim said the company was looking
at few areas that would involve
working foreigners partners.
The
company had forged a successful
strategy for growth by working with
reputable charterers and partners.
Its last acquisition –the 150,000
dwt capesize bulker carrier Meridian
Polaris – was made in association
with NYK of Japan.
The
core business activity of the
company is focused on shipowning and
operations. HMB has a fleet of
nine vessels with a combined fleet
strength totaling 311,272 dwt. The
diversified fleet includes clean
product tankers, dry bulkers and
container vessels.
Halim
said the company, which raises it
paid up capital to RM68 million with
its migration to the main board, has
maintained a prudent policy of
growth with its strategic alliance
with reputable partners.
Based
on the reported 9-months financial
results of the company, HMB is
poised to register yet another year
of sustained growth for the current
financial year.
In
the first nine months of 2001 the
total turnover topped RM94 million
(against RM91 million for the whole
of 2000) and a profit after tax of
RM14.4 million (compared with RM14.4
million for the whole of 2000).
The
company’s sustained performance
has also been attributed to its
earning (totaling 85 per cent) that
are US-denominated and the benefit
of the pegging of the Malaysian
Ringgit to the US Dollar (at RM3.8
to US$1).
The
company, which is slated to secure
the lucrative long-term contract for
the carriage of coal for the
state-owned utility, expects the
main board listing to enhance the
rating of the company to seek funds
for expansion in the capital market.
“We
will continue to tap the capital
market including banks which have
rallied around HMB to fund
acquisitions which shall be based on
quality of the earnings,” said
Halim, who although admitted a
vision to expand his fleet from nine
vessels to a score in his lifetime,
will not be rushed into it.
“It
is not the number of ships that
matters; it is the quality of
earnings that we are interested
in,” said Halim, who spent 21
years building up the high profile
HMB together with his wife Mazmin
Nordin
Halim
takes particular satisfaction in HMB
making positive contributions to the
economy, including in helping to
stem the outflow of foreign
exchange, contributing towards
national merchant fleet development,
fulfilling the NEP objectives of
promoting bumiputra entrepreneurship
and providing employment
opportunities for Malaysian seamen.
Halim
maintained the company has taken
careful decisions in ensuring the
deployment of its vessels in trades
that benefit the national economy
and “this approach will be central
in our expansion plan as HMB intends
to play even a bigger role in the
national trade.”
However,
he urged the government to take a
closer look at the practice of
awarding of contract for shipments
that favour foreign carriers.
“These foreign carriers, with
written-down assets, are able to
submit unrealistic freight charges
when competing with home-grown
shipping lines. Under such
circumstances it would be extremely
difficult for local companies to
break into the market for the
carriage of cargo for government
utilities and agencies unless the
government creates the right
environment,” Halim noted.
Halim
stressed the government had a
responsibility to foster the
development of the national merchant
fleet and this would only be
meaningful if fair access is
provided for local companies to
engaged in the carriage of national
cargoes. He felt it was pointless,
if in the name of competition,
foreign lines are always favoured as
it would prevent the emergence of a
critical mass in the national
shipping capacity.
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