DBE (7179) - DBE Gurney Resources among top traded stocks following new franchise deal

KUALA LUMPUR : Poultry firm DBE Gurney Resources Bhd's shares saw heavy trading volume today following a strategic co-operation agreement in the secondary processing of chicken and marketing of processed value added products.

As at 11:20AM today, DBE rose half a sen to 5.5 sen with a total turnover of some 18.4 million shares. The company's price had remained largely flattish this year at around 5 sen per share prior to the announcement.

On April 14, DBE announced that it had inked a strategic agreement with Pexden Holdings Sdn Bhd, which is a company nominated by seven Taiwanese firms.

Under the agreement, Pexden shall provide technical knowhow, machinery, production, expertise, branding, related software and other advisory services, as well as to market the secondary processed value-added chicken products in Malaysia under the Harumi brand to DBE.

Additionally, the agreement also entails a commission rate of 5% payable to Pexden based on the total monthly sale of raw materials which include marinated, breaded, or battered chicken products supplied by DBE. The arrangement is valid for 10 years with an option to renew upon expiry of the agreement.

According to a statement by DBE, the Harumi brand has obtained halal certification from the Department of Islamic Development Malaysia (JAKIM), making it the country's first halal-certified fried chicken franchise brand.

“This agreement reflects our respective commitment to strengthen our partnership and jointly develop new products under the Harumi brand. We believe that by leveraging on the respective expertise, resource advantages, cross market asset allocation capabilities and client services, it would be a win-win situation for both companies,” said DBE group managing director Datuk Alex Ding Seng Huat.

Going forward, the company aims to have 30 restaurants, 3,000 kiosks and 300 mobile trucks in the next three years via a franchising structure, he added.

DBE (7179) - DBE Gurney Resources among top traded stocks following new franchise deal