Hohup - Breaking Heaven Soaring Sky

As we are reaching the end of October 2013, usually this day will always be "marked" by the local giants in a manner to create a better history in the Malaysian share market KLCI index. The 1st month of the 4th quarter of 2013 had mark some remarkable event like the Malaysian Budget 2013 which had given the Malaysian market some direct boost towards certain sector and direct damage as well on certain sectors. The 2 main talking component - GST and RPGT had speared into the market with their chain effect which we saw property counter shredding off value by a higher tag on RPGT and certain IT company receiving countless demand which had lifted the shares higher.

While there are many happening out there, it had been some happening moment for Ho Hup Construction Company, or well known as HoHup.

Let's have a quick look up at HoHup recent activities in the market.

The share price of HoHup had escalated fairly fast when they had started their restructuring process after getting the nod from shareholder and creditors. As HoHup had been consolidating off the mark at RM 1.80 for around 1 month, the golden land bank that HoHup had at Bukit Jalil which had been in tussle with Malton had came to an agreement where both parties will be collaborating into developing the 50 acre land in Bukit Jalil. Apart from that, the construction of Pavillion 2 which had been in the talk had further spiral HoHup into a better outlook as they are possibly involving in the construction of Pavillion 2 which had been one of the KL busiest area.

HoHup, with a total share issued of 102m shares and Par Value of RM 1.00 had been targeting earning of RM 1.00 EPS for FYE 2014 prior to the contribution of the Bukit Jalil project with fast running project and easy to sell. Their SOVO which had been sold out more than 75% had been one of the major contributing pipeline in the revamp of HoHup.

A quick technical outlook will definitely suggest that impending volume will be marching forward once consolidation had reaches it's level of saturation, and we are looking at HoHup to consolidate further which might be likely near to RM 2.00 on it's next flight. While on the fundamental outlook, HoHup repackaging and revamping their business through debts capital restructuring process and on going projects with future prospectus had change the outlook of HoHup into a turning point.

While we are looking at HoHup potential, Insas Berhad had been busy accumulating off open market up to a stake of 10% and I believe HoHup primary values will be unlock in a quick manner if major shareholder Formis Resources Berhad, FRB, decides to take HoHup private as a wholly owned subsidiary.



With the similar spike on 9th October 2013 in HoHup and FRB, the possibilities of HoHup getting privatized by FRB could be just around the corner as FRB might look to unlock the deeper and stronger values in HoHup on their own.

Bone short term TP: RM 1.95

Cheers and happy trading

Author: bonescythe