Stock With Momentum: Hap Seng Consolidated

This article first appeared in The Edge Financial Daily, on June 18, 2018.
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Hap Seng Consolidated Bhd (+ve)
TRADING of the shares in Hap Seng Consolidated Bhd (fundamental: 1.3/3, valuation: 1.3/3) triggered our momentum algorithm last Thursday for the first time this year. The group saw 937,700 shares traded.

The stock rose 13 sen or 1.33% to close at RM9.89, leaving it with a market capitalisation of RM24.62 billion.

It was the 12th top gainer on Bursa Malaysia that day.

Hap Seng currently trades at 3.93 times its book value.

The plantations and consumer goods conglomerate had on June 8 completed the disposal of its entire stake in HSC Sydney Holding Ltd and 20% in Hap Seng Credit Sdn Bhd to related party Lei Shing Hong Capital Ltd for a total of RM1.68 billion.

However, its plan to acquire a 55% stake in Sabah-based plantations firm Kretam Holdings Bhd, via its subsidiary Hap Seng Plantations Holdings Bhd, was called off after due diligence of Kretam yielded “unsatisfactory and unacceptable” results.