Stock With Momentum: Chin Hin Group

This article first appeared in The Edge Financial Daily, on July 17, 2019.
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Chin Hin Group Bhd (-ve)

TRADING of shares in Chin Hin Group Bhd (fundamental: 0.25/3, valuation: 0.8/3) triggered our momentum algorithm for the third time this year.

At the closing bell, the stock was down 7.5 sen or 8.57% to 80 sen, valuing it at RM440.05 million. A total of 3.64 million shares were traded, sharply higher compared with the counter’s 200-day average of 253,249 shares.

Chin Hin’s associate Atlantic Blue Sdn Bhd has proposed a listing on the ACE Market of Bursa Malaysia via special purpose vehicle Solarvest Holdings Bhd.

Solarvest on Jan 30 entered into a conditional sale and purchase agreement (SPA) to acquire the entire stake in Atlantic Blue for RM26.26 million, which will be satisfied via the issuance of 291.79 million new shares in Solarvest at nine sen apiece. The SPA was completed on Monday, and Solarvest is now a 45%-owned associate of Chin Hin while Atlantic Blue is 100% owned by Solarvest.