SINGAPORE (May 28): Phillip Securities is initiating coverage of SHS Holdings with a “buy” given a surge in demand for modular housing in New Zealand as well as an upcoming recurring revenue from a solar project in Bangladesh.
SHS currently derives revenue from corrosion prevention, structural steel and facade engineering. However, Phillip says future growth will mainly come from its two new business segments of solar energy and modular construction.
According to a Friday report, lead analyst Paul Chew says there is a huge shortage of housing in New Zealand. Yearly demand for new houses is around 18,000 while supply is struggling at 10,000. Since 2009, there has been a cumulative shortfall of nearly 44,700 units.