Dear Readers, welcome back to “The Huat Project”. We would like to share our study on this particular undervalued stock: SCBUILD(0109)- See Your Wealth Build!

Introduction:

SC Estate Builder Berhad SCBUILD(0109) is a Syariah Compliant Public Listed Company listed on ACE Market of Bursa Malaysia Securities Berhad since 29 November 2005. SCBUILD(0109) Group's core business is Construction and its related industries including Renewable Energy On Solar Power Plants, Solar Power On The Roofs, Affordable Houses, Infrastructure Works And Related Businesses.

News & Rational Analysis

We all know that after USA elected their new 46th President, Joe Biden, who advocates clean energy, all the solar companies around the world experienced a bull ride for their share price. 

Biden infrastructure plan includes 10-year extension (https://www.solarpowerworldonline.com/2021/03/biden-infrastructure-plan-direct-pay-solar-itc/ )

Another great news for solar players is that USA plans to slash the Solar Energy Cost by 60%, and the only way to do that is to improve technology and build more Solar Energy Infrastructure. 

(https://www.reuters.com/article/us-usa-solar-idUSKBN2BH2ME )

SCBUILD(0109) is a little bit of a laggard compared to the others, which means that SCBUILD(0109) is undervalued compared to its peers valuation. 

SCBUILD(0109) company vision is very much in line with THE USA 46th President. “Investing in the Renewable Energy over 10 Years” (https://focusmalaysia.my/business/sc-estate-builder-investing-billions-in-the-renewable-energy-market-over-10-years/ ) SCBUILD (0109) plans to build 2000-3000MW of Solar Powered Plants.

As of now SCBUILD(0109) has alot of contracts under their belts, and can be read here. https://www.malaysiastock.biz/Bursa-Announcement.aspx?code=0109&page=1
 

Technical Analysis 

After breaking out from its sideways, SCBUILD(0109) has been on a uptrend. Although there is a higher volume during the 21 April, however SCBUILD(0109) managed to stay above its uptrend line. The immediate Resistance is at RM0.140, which if broken will retest the resistance of RM0.180. With RM0.110 as support, the Reward:Risk Ratio is 7 times.

Hint hint: Will the immediate resistance of RM0.140 be broken after SCBUILD(0109)’s acquisition?

Conclusion

We believe that SCBUILD(0109) is a good stock as their visions are in line with the World Leader’s Vision. They also have multiple contracts under their belt. Also, it is rumoured that they will soon acquire another company to generate more money, and the acquisition is in its final stage.

What will you do? 

DISCLAIMER: This post serves as an educational analysis and is never meant to be a buy/sell call or recommendation. Investors must always do their own due diligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.