What else is brewing at EPMB 7773 S EP MANUFACTURING BHD?

 What else is brewing at What else is brewing at  EPMB 7773 S EP MANUFACTURING BHD??



EP Manufacturing Bhd was one of the most actively traded counters listed on Bursa Malaysia on June 9.


So much so, it gained almost 20% to close at 89 sen.


But on a year basis, the counter had lost some 11%.


Then again, just the uptrend on June 9 alone would have made investors very happy, coming off from a year low of 40 sen versus a high of RM1.35.


Will no apparent recent news on EP Manufacturing, it is puzzling the counter is moving higher.


The auto parts manufacturer has been quite busy going into deals over the past year or so.


In August last year, EP Manufacturing ’s unit EP 4Wheeler Sdn Bhd (EP4W) inked an MOU with Johor-based Cahaya Bumi Sdn Bhd, which had a 6 month period, to execute a definitive agreement for the new and used imported car distribution business collaboration.


However, about 9 months later on May 8, EP Manufacturing said the collaboration talks for the new and used imported car distribution, in particular electric vehicles (EVs) and its localisation activity, has come to an end.


Cahaya Bumi is an imported used car company, which has a line-up including imported luxury brands Ferrari, Lamborghini and Rolls Royce.


There were other EV-related agreements being signed after August.


In December last year, it entered into an exclusive distributor agreement with Hubei Dongfeng Power Auto Trade Co Ltd and Xiamen Tsingyan Hylong Motor Technology Co Ltd to assemble and sell Lingbox EVs in Malaysia and Indonesia.


In addition to assembling and selling Lingbox auto products, EP Manufacturing's subsidiary EP 4W has also been granted the right to assemble completely knocked-down (CKD) and semi-knocked-down (SKD) Lingbox vehicles as well as conducting independent upgrades or adaptive improvements to the products.


The agreement would allow the group to take its first step in its four-wheeler EV strategic journey.


Then slightly over a week later, on Jan 9, 2023, it formed a partnership with two foreign companies to sell two-wheel EVs in Indonesia and Vietnam.


The group said its wholly-owned subsidiary, EP Blueshark Sdn Bhd (EBSB), has entered into a master agreement with Averte Global Pte Ltd and Blueshark Group Ltd to capture the e-motorbike business opportunities in the two countries.


Averte is a Singapore-based green products and services provider, while Blueshark is a Hong Kong-based two-wheel EV manufacturer.


It said that Averte and Blueshark may form a joint venture company ― Averte Blueshark Asia Ltd ― to purchase an initial 23,000 units of the e-motorbike from EBSB in 2023, and not less than two million units over the five-year term of the agreement.


About a week after that, EP Manufacturing entered into an MOU with Tenaga Nasional Bhd to explore the possibility of localising the production of battery and battery swapping stations for the Asean market.


The MOU also involves deploying battery swapping stations via TNB subsidiary Tenaga Switchgear Sdn Bhd's network in Malaysia and the Asean region.


It is certainly good that EP Manufacturing appears to be trying to work out something to ensure its sustainability.


But until something really materialise, investors should adopt a wait-and-see approach until a firm deal is signed.
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