Favelle Favco Bhd (-ve)
TRADING of shares in Favelle Favco Bhd (fundamental: 1.8/3, valuation: 2.4/3) triggered our proprietary momentum algorithm yesterday for the first time in two years.
At yesterday’s close, the stock finished four sen or 1.57% higher at RM2.59, giving it a market capitalisation of RM572.96 million. A total of 182,500 shares were crossed, more than double the counter’s 200-day average trading volume of 88,894 shares.
On Wednesday, Favelle Favco announced that it had secured six contracts to supply tower cranes and offshore cranes to various clients. The contracts, awarded to its units Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes (USA), Inc and Favelle Favco Cranes (M) Sdn Bhd, have an aggregate value of RM61.1 million.
The contracts are expected to contribute positively to the earnings and net assets of the company for the financial year ending Dec, 31 2019 and beyond.