Stock With Momentum: See Hup Consolidated

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This article first appeared in The Edge Financial Daily, on January 8, 2016.


See Hup Consolidated Bhd (-ve)

SEE Hup (Fundamental: 0.75/3, Valuation: 1.2/3) first triggered our momentum alert yesterday, with 85,000 shares changing hands. The stock closed unchanged at RM1.16.

The company is involved in general cargo transporting and freight forwarding, as well as servicing and maintaining heavy vehicles.

On Dec 2, See Hup’s 65%-owned subsidiary, SH Global Freight Sdn Bhd, entered into an agreement with Tokyo-listed Maruzen Showa Unyu Co. Ltd. to establish a joint venture company (JV Co). The JV Co would operate and provide logistics, fowarding, warehousing, and other related incidental business and services. SH Global will hold a 40% stake in the JV Co.

For 1HFYMar2016, despite flattish revenue, See Hup posted a net loss RM405,000, compared to a net profit of RM102,000 a year ago. It should be noted, though, that the profit in 1HFY15 included one-off items amounting to a gain of RM128,000 — without which the company would have made a net loss of RM26,000.

The stock trades at book value.