Positive on MMC’s 60 per cent acquisition in Swettenham Pier Cruise Terminal

KUCHING: Analysts are positive on MMC Corporation Bhd’s (MMC) recent acquisition of 60 per cent equity interest in Swettenham Pier Cruise Terminal Sdn Bhd (SPCTSB), of which the remaining shares were acquired by Royal Caribbean Cruises Ltd.

In MMC’s filing on Bursa Malaysia, it was reported that SPCTSB intends to undertake the development, operation, management and maintenance of the Swettenham Pier Cruise Terminal on the island of Penang, Malaysia.

“We view the news positively as it will strengthen the capability of Swettenham Pier Cruise Terminal to for cater larger cruise ships at its facilities which will increase the number of international transit calls,” the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said.

According to MIDF Research, in 2017, the terminal has seen 125 cruise ships called compared with 78 cruise ships in Port Klang.

The research arm noted that in tandem, the number of passengers at the Swettenham Pier terminal reached 1.2 million people in the same year, the highest in three years.

“Moving forward, Swettenham Pier Cruise Terminal is expected to attract 1.8 million passengers in financial year 2018 (FY18), indicating an annual growth of nearly 50 per cent.”

On earnings forecasts, MIDF Research maintained core profit after tax and minority interests (PATAMI) of RM292 million and RM352.1 million for FY18 and FY19, respectively, as the research arm had already factored in the growth of passenger terminals into its estimates.