Ewein Bhd (-ve)
Ewein (Fundamental: 1.1/3, Valuation: 1.4/3) triggered our momentum alert on April 2, when its share price was 59 sen. Yesterday, the stock was again picked out by our algorithm with 4.3 million shares changing hand. The stock closed at 77 sen.
To recap, the company is involved in the manufacturing of precision sheet metal fabricated parts and plastic injection moulding products. However, Ewein is diversifying into property development, after earnings from its core business more than halved since 2010.
In line with the strategy, the company entered into a joint venture with Consortium Zenith BUCG Sdn Bhd to develop a 3.67 acre land in Penang. It received approval for the building plans at end-March.
The development is expected to commence in 2H2015 and has a gross development value of approximately RM800 million. Construction works, including design, construction, piling and foundation, building and property fit-out works, installation of air conditioning units and elevators as well as interior decoration would be sub-contracted to independent third parties.
This article first appeared in The Edge Financial Daily, on April 21, 2015.