Swee Hong

Swee Hong: BusinessTimes highlights that investors should treat the recent share price surge of Swee Hong with a healthy dose of scepticism, given the lack of a visible fundamental catalyst to underpin the recovery. To begin with, there is no apparent catalyst for the Feb rally in the stock. No new contracts either, save for the setting up a JV with six other parties to tender for and undertake MRT projects, which has yet to bear tangible fruit. In terms of earnings multiples, loss-making and non-dividend paying Swee Hong is clearly more richly valued than its rivals. Key competitors Hock Lian Seng Holdings, Koh Brothers Group, Lum Chang Holdings and OKP Holdings, which are all profitable and all pay dividends. Incidentally, Swee Hong's top shareholders include Ipco International chief executive Quah Su-Ling, LionGold Corp director of business and corporate development Peter Chen Hing Woon, and LionGold independent director Ng Su Ling, who was also formerly a director at Blumont.