Exactly 2 weeks ago, I wrote a blog post on SHH Resources Holdings Berhad as the first part of my new 'No Brainer Investments' series. The share price pf SHH then was a mere RM1.75 and people were disposing as if the stock was poison. However, in just a short span of 2 weeks, the share price has increased almost 18% to RM2.08.

As we are all already familiar with SHH's balance sheet strength with net cash of RM0.58 or 30% of market cap, cash flow prowess with 9 months free cash flow yield that already hit 12% and how undervalued it is compared to its peers using price-to-earnings 6.44x and price-to-tangible assets  of 1.19x, today I will talk about SHH's future growth prospects:

1) US potential: In a presentation earlier in the year conduction by the company's vice chairman, it was noted that SHH's largest and most important  customer is Ashley Furniture Industries. Many might not have heard of Ashley Furniture in Malaysia, but if you live in the US, it would be a household name being the largest furniture retailing store in the US with 460 stores. Looking at Ashley's growth plans, SHH would undoutedly benefit from higher orders.

Sales in the US has been brisk, with consumer spending improving every month as the economy recovers to pre-crisis levels.

Not only that, JCPenney which operated 1060 stores in the US will soon be carrying Ashley Furniture goods!

2) Asia Expansion: Ashley Furniture isn't stopping there. It is embarking on a major push to become the largest retailer in the whole of Asia.

It plans to open 1000 new stores in the next 10 years with focus on China and Vietnam. In 2016 alone, Ashley Furniture plans to set up 100 new stores.

In addition, Ashley will be aggressively pushing to grow its online retail platform riding on strong online sales in China and Asia.