COMPUGT (5037) - Compugates bags 1-year agarwood supply contract worth RM43.88m
April 24, 2015 : 6:54 PM MYT
KUALA LUMPUR (Apr 24): Compugates Holdings Bhd will be selling RM43.88 million worth of standing agarwood trees to Westwood Marketing Sdn Bhd, a unit of Singapore-based Westwood Investment Group Pte Ltd, for one year.
In a filing with Bursa Malaysia, Compugates said its wholly-owned subsidiary Compugates Marketing Sdn Bhd has entered into a Standing Agarwood Sale and Cutting Agreement (SASC) with Westwood Marketing for the deal.
Demands for gaharu trees, or so-called agarwood, are mainly due to its wood and oil. The main market demands are from China, Taiwan, Japan and the Middle East. Trade value per year through Singapore is estimated at US$1.2 billion.
Compugates said the execution of the SASC will enable it to expand its agricultural related businesses.
“Compugates Marketing’s valuable experience in the production of product and by-products derived from gaharu/agarwood, and also having an existing gaharu/agarwood plantation, Westwood Marketing is confident that with Compugates Marketing’s experiences with Gaharu, it will be able to synergise the business for the both companies,” the filing read.
“The SASC agreement is expected to contribute to the earnings of the company and the group for the financial year ending Dec 31, 2015 (FY15), onwards,” Compugates said.
Compugates’ share appreciated one sen or 22.22% to 5.5 sen today, for a market capitalisation of RM96.04 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/
April 24, 2015 : 6:54 PM MYT
KUALA LUMPUR (Apr 24): Compugates Holdings Bhd will be selling RM43.88 million worth of standing agarwood trees to Westwood Marketing Sdn Bhd, a unit of Singapore-based Westwood Investment Group Pte Ltd, for one year.
In a filing with Bursa Malaysia, Compugates said its wholly-owned subsidiary Compugates Marketing Sdn Bhd has entered into a Standing Agarwood Sale and Cutting Agreement (SASC) with Westwood Marketing for the deal.
Demands for gaharu trees, or so-called agarwood, are mainly due to its wood and oil. The main market demands are from China, Taiwan, Japan and the Middle East. Trade value per year through Singapore is estimated at US$1.2 billion.
Compugates said the execution of the SASC will enable it to expand its agricultural related businesses.
“Compugates Marketing’s valuable experience in the production of product and by-products derived from gaharu/agarwood, and also having an existing gaharu/agarwood plantation, Westwood Marketing is confident that with Compugates Marketing’s experiences with Gaharu, it will be able to synergise the business for the both companies,” the filing read.
“The SASC agreement is expected to contribute to the earnings of the company and the group for the financial year ending Dec 31, 2015 (FY15), onwards,” Compugates said.
Compugates’ share appreciated one sen or 22.22% to 5.5 sen today, for a market capitalisation of RM96.04 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/
