Ho Hup Construction Co Bhd (+ve)
SHARES in Ho Hup Construction Co Bhd (fundamental: 0.8/3, valuation: 1.5/3) triggered our proprietary momentum algorithm for the first time this year.
The stock closed one sen or 1.94% lower at 50.5 sen, giving it a market capitalisation of RM187.43 million. Ho Hup shares last traded below their book value. Some 1.16 million shares were traded, exceeding the counter’s 200-day average volume of 242,173 shares.
Ho Hup’s net profit fell 30.28% for the first quarter ended March 31, 2018 to RM8.64 million from RM12.39 million, despite revenue jumping by 64.6% to RM58.49 million from RM35.54 million a year ago. The decrease in net profit was mainly due to the increase in finance costs with new additional short-term loans undertaken for working capital requirements of Ho Hup. As a result, its earnings per share declined to 2.31 sen from 3.31 sen.
The group said it expects to perform satisfactorily for the financial year 2018 with the implementation of three initiatives, one of which is 323 units of The Crown Service Suites, together with the Crowne Plaza Hotel including 18 retail outlets in Kota Kinabalu, which will commence in the third quarter of 2018.