Favelle Favco Bhd (-ve)
TRADING of shares in Favelle Favco Bhd (fundamental: 1.8/3, valuation: 2.4/3) triggered our stocks with momentum algorithm yesterday for the second time this year. The stock closed unchanged at RM2.80 yesterday, with 701,000 shares done. The trading volume is higher compared with the counter’s 200-day average trading volume of 96,957 shares.
On Feb 20, the group said its units had secured six contracts to supply tower and offshore cranes to various clients for a cumulative RM61.1 million. It said its units Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes (USA), Inc and Favelle Favco Cranes (M) Sdn Bhd received the purchase orders or letter of intent for the contracts between November 2018 and the time of announcement.
There are four contracts for the supply of tower cranes, and the other two for offshore cranes. All contracts are expected to be delivered in 2019. Favelle Favco is currently trading at 0.94 times its net book value.