KUALA LUMPUR (March 10): Frozen food processor Saudee Group Bhd (formerly known as Sinaria Corp Bhd) surged to its all-time high of 84 sen today, following a distribution agreement (DA) with a Hong Kong-listed company to supply frozen meats and products to the Chinese markets.
At the time of writing, Saudee — the fourth top active stock in morning trade today on Bursa Malaysia — jumped 36.11% or 20 sen to 74 sen with some 131.01 million shares traded, almost 30 times its 200-day average trading volume of 4.4 million.
This gave the group a market capitalisation of RM99.02 million.
Year to date, the stock has soared 51.02% from 49 sen on Dec 31, 2020.
Meanwhile, its warrant Saudee-WA — the second top active — swelled 262.5% or 10.5 sen to 14.5 sen.
In a bourse filing yesterday, Saudee said its wholly-owned subsidiary Perusahaan Saudee Sdn Bhd had entered into the DA with Top Standard Corporation (TSC).
TSC, which will distribute the products, will make purchases with a minimum annual value of US$400,000, according to the group.
“This collaboration will enable Saudee to penetrate into one of the biggest markets in the world i.e. China, Hong Kong and Macau. This will enhance the market presence of Saudee Halal products and improve the revenue of Saudee,” it said.
The group said the agreement is not expected to contribute materially to the earnings and net assets of Saudee and its group of companies for the financial year ending July 31, 2021.
“However, it is hoped that the DA will improve the future earnings of the group once the products have been marketed, sold and distributed by TSC and have gained traction in the territory. The DA will not have any effect on the share capital and shareholding structure of Saudee,” it added.
Source: The Edge