KUALA LUMPUR (May 27): Shin Yang Group Bhd (KL:SYGROUP) said its subsidiary, Shin Yang Shipyard, has received a letter of intent (LOI) from the Ministry of Home Affairs to build two offshore patrol vessels (OPV 2 and OPV 3) for the Malaysian Maritime Enforcement Agency (MMEA).
In a filing with the bourse, the group said the LOI, received on May 20, shows the ministry’s interest in appointing the shipyard for the project, but a formal contract will only be signed after final negotiations on details like pricing and payment.
Shin Yang Group said the LOI is not legally binding, so there is no guarantee the contract will be awarded. If it is, the project is expected to boost the group’s earnings and assets.
The contract could face risks such as delays, regulatory changes, challenges in execution, and availability of skilled workers and materials. The company’s board will monitor and manage these risks closely.
Shin Yang Holding, controlled by the Ling family, owns 58.61% of Shin Yang Group.
For the second quarter ended Dec 31, 2024, the group’s net profit more than doubled to RM42.42 million, up from RM19.52 million a year earlier. Revenue rose 160% to RM611 million, helped by its new automotive segment.
Shares of Shin Yang Group closed up 2.5 sen or 3.38% to 76.5 sen on Tuesday, valuing the group at RM830.5 million.
By BERNAMA
