KUALA LUMPUR, Jan 10 (Bernama) -- ECM Libra Investment Research has recommended Shin Yang Shipping Corp (SYS Corp) as a 'trading buy', saying that at its current price, the shipping operator offers a dividend yield of 3.6 per cent and it could potentially double to its targeted price of RM1.

SYS Corp, the largest shipping operator in Malaysia by number of vessels, was hovering at 47 sen, lower by 1.5 sen at 11am today on Bursa Malaysia.

The research house based its optimism on the recent strong rebound on volume by competitor Malaysian Bulk Carriers, despite risks of shipping oversupply and lower global trade demand.

"If so, SYS Corp's share price could also be starting to turn around," ECM Libra said.

Based on estimates, 30 per cent of SYS Corp's shipping business caters to SY Holding Group (Shin Yang Group), a Sarawak-based conglomerate owned by the Ling family, which also owns 29 per cent of listed Sarawak Oil Palms Bhd, a well-managed and profitable plantation company.'

Shin Yang and the Ling family own 67 per cent of SYS Corp.

Another advantage is SYS Corp's cost advantage against other shipping companies as it builds its own ships, it said.