Stock With Momentum: SHL Consolidated

SHL Consolidated Bhd (-ve)

SHARES in SHL Consolidated Bhd (fundamental: 1.65/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the first time this year.

The counter closed down two sen or 0.7% at RM2.82 yesterday, after 53,100 shares were traded, compared with its 200-day average volume of 12,602 shares.

SHL’s joint-venture company (JVco) with Japan-based Marubeni Corp is looking to tap into Myanmar’s affordable housing market, in line with their Asean business venture initiative.

Instead of entering into new geographical markets, the JVco plans to leverage on areas where Marubeni has a strong presence in, and Myanmar is a potential starting point as Marubeni is already involved in industrial projects there. In May, SHL, via its wholly-owned unit Sin Heap Lee Development Sdn Bhd, incorporated the JVco with Marubeni’s unit MC Chance Malaysia Sdn Bhd.

SHL is currently on the lookout for suitable land banks, mainly in the Klang Valley, Penang and Melaka. At the current share price, SHL is trading at 0.89 times its book value.

Source : The Edge Markets