Stock With Momentum: SHL Consolidated

This article first appeared in The Edge Financial Daily, on August 27, 2018.
-A +A

SHL Consolidated Bhd (-ve)

Trading of the shares in SHL Consolidated Bhd (fundamental: 1.65 /3, valuation: 2.4/3) triggered our momentum algorithm last Friday for the first time this year. The group saw 12,800 shares traded compared with its 200-day average of 9374.5 shares. The stock closed five sen or about 2% higher at RM2.65, giving it a market capitalisation of RM641.63.

SHL posted a flat net profit of RM17.48 million for its first quarter ended June 30, 2018 (1QFY19) from RM17.44 million a year ago; revenue grew slightly to RM51.06 million from RM50.77 million, on the successful new launch of Sungai Long Residence in February.

Last Friday, SHL executive director Datuk Seri Yap Chong Lee said the group’s joint-venture company (JVco) with Japan-based Marubeni Corp is looking to tap into the Myanmar affordable housing market, in line with their Asean business venture initiative.

SHL has an indirect 67% stake in the JVco, while MC Chance Malaysia Sdn Bhd holds the balance 33%.