XINGHE (0095) - Xinghe, Asfar to set up edible oil manufacturing plant in Malaysia
March 31, 2015 : 2:03 PM MYT
KUALA LUMPUR (Mar 31): China-based ACE Market-listed XingHe Holdings Bhd is teaming up with Arab Supplier Fabrication and Retail Sdn Bhd (Asfar) to set up a new edible oil manufacturing plant in Malaysia as well as explore export opportunities to the Middle East, Africa, Europe and Southeast Asian regions.
The new plant, once completed, is expected to produce about 10,000 tonnes of oils per month at its 90% to 100% capacity.
"We expect our partnership with the Asfar group will contribute positively to our future earnings as we strengthen foothold in foreign markets, especially in Jordan where Asfar has a supply concession," XingHe executive director Stephen Ng Min Lin told reporters after the partnership signing ceremony today.
Asfor is a manufacturer and exporter of palm-related products.
Ng is of the view that the partnership would open up more business opportunities and increase XingHe's (fundamental: 1.2; valuation: 1.2) presence in these markets.
"With both companies' expertise and experience in the edible oil industry, we are confident that the joint venture (JV) will be a success and we are looking at generating additional revenue of 15% to 20% in the first year itself," he said.
Under the JV, XingHe will provide an initial investment of RM10 million to build the new packing and processing factory to produce several types of oils and fats such as peanut oil, soya bean oil, palm oil and blended oil for export purposes.
Asfar will also invest another RM10 million to fund the operational expenses besides bringing in businesses, concession off-take and contracts from their existing networks in the Middle East and other regions.
According to XingHe's statement today, total investment value for this JV may come up to RM90 million within the next five years.
"The JV entity will able to access the Jordan market with benefits such as special tax exemption, priority in using the port, warehouse facility and subsidies given by the Jordanian Government to be the main supplier of edible oils in the country," it said.
Trading in XingHe shares will be suspended today. The counter closed up 4.35% at 12 sen yesterday, bringing a market capitalisation of RM281.82 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
http://www.theedgemarkets.com
March 31, 2015 : 2:03 PM MYT
KUALA LUMPUR (Mar 31): China-based ACE Market-listed XingHe Holdings Bhd is teaming up with Arab Supplier Fabrication and Retail Sdn Bhd (Asfar) to set up a new edible oil manufacturing plant in Malaysia as well as explore export opportunities to the Middle East, Africa, Europe and Southeast Asian regions.
The new plant, once completed, is expected to produce about 10,000 tonnes of oils per month at its 90% to 100% capacity.
"We expect our partnership with the Asfar group will contribute positively to our future earnings as we strengthen foothold in foreign markets, especially in Jordan where Asfar has a supply concession," XingHe executive director Stephen Ng Min Lin told reporters after the partnership signing ceremony today.
Asfor is a manufacturer and exporter of palm-related products.
Ng is of the view that the partnership would open up more business opportunities and increase XingHe's (fundamental: 1.2; valuation: 1.2) presence in these markets.
"With both companies' expertise and experience in the edible oil industry, we are confident that the joint venture (JV) will be a success and we are looking at generating additional revenue of 15% to 20% in the first year itself," he said.
Under the JV, XingHe will provide an initial investment of RM10 million to build the new packing and processing factory to produce several types of oils and fats such as peanut oil, soya bean oil, palm oil and blended oil for export purposes.
Asfar will also invest another RM10 million to fund the operational expenses besides bringing in businesses, concession off-take and contracts from their existing networks in the Middle East and other regions.
According to XingHe's statement today, total investment value for this JV may come up to RM90 million within the next five years.
"The JV entity will able to access the Jordan market with benefits such as special tax exemption, priority in using the port, warehouse facility and subsidies given by the Jordanian Government to be the main supplier of edible oils in the country," it said.
Trading in XingHe shares will be suspended today. The counter closed up 4.35% at 12 sen yesterday, bringing a market capitalisation of RM281.82 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
http://www.theedgemarkets.com
