SHL Consolidated Bhd (-ve)

SHARE price of SHL (Fundamental: 3/3, Valuation: 2/3) has recovered steadily from a low of RM2.72 in December last year, up 23.9% since then. The cash-rich property developer pays good dividends, with a net yield of 7.4%, and is trading at undemanding valuations — trailing 12-month P/E of 7.8 times and 1.16 times book.

SHL is the master developer of Bandar Sungai Long and has low-cost landbank in suburban areas in the Klang Valley. Net cash stood at RM213.7 million, equivalent to 26.2% of its current market capitalisation.

For FYMar2015, revenue grew 12.3% to RM230.6 million while net profit jumped 77.3% to RM103.5 million, mainly due to profit contribution from two newly launched projects in Selangor, lower operating expenses, and revaluation gain of RM5.1 million on investment properties.

Last month, the company declared a final dividend of 8 sen per share (ex-date: September 11), bringing total dividends for FY2015 to 25 sen.

This article first appeared in digitaledge Daily, on August 5, 2015.