KUALA LUMPUR (Feb 20): Printed circuit board (PCB) maker GUH Holdings Bhd has proposed a bonus issue of 140.14 warrants on the basis of one warrant for every two shares held.

As the warrants are issued at no cost, the group said it will fix the exercise price of the warrants at a premium of 10% to 20% to the five-day volume weighted average market price (VWAP) of GUH shares up to the day prior to the price-fixing day.

The indicative exercise price of the warrants is assumed at 50 sen, which represents a premium of 19.85% to the five-day VWAP of the group’s shares up to the latest practicable date of 41.72 sen, GUH said in a bourse filing, in which it also  announced its plan to diversify into the renewable energy business and related activities.

"The group’s existing principal business comprises, amongst others, the manufacturing and sales of PCBs catering to communication, audio and video, computer, automotive, home appliance and other consumer products, which has been the group’s mainstay operations and primary contributor to the group’s revenue and profitability since 1987.

"Over the years, due to the increasing competition in the PCB manufacturing industry and the emergence of new competitors, the group has explored various initiatives and ventures to diversify its earnings base," said GUH.

In line with its recent diversification strategy, the group via its 40%-owned associate Leader GUH Renewable Energy Sdn Bhd has undertaken some investments to participate in the renewable energy business.

GUH Energy has acquired a 60% stake in Taiwan-based Yabisi Solar Power Co Ltd, which is presently undertaking the development of a large-scale 76.5 megawatt peak floating solar photovoltaic project in that country.

Leader GUH Energy has also established four new entities with the intended goals of bidding for and securing new renewable energy projects in Taiwan. These entities are presently in the process of bidding for and undertaking smaller-scale ground and rooftop solar photovoltaic projects across Taiwan, said the group.

For the financial year ended Dec 31, 2022 (FY2022), GUH posted a net loss of RM4.28 million compared to a net profit of RM14.57 million net profit a year earlier, mainly due to lower contribution from electronic and utilities divisions, reversal of amortisation of financial guarantee contract and absence of gain on disposal of associate.

Full-year revenue declined to RM275.84 million from RM278.8 million in FY2021.

Cash and cash equivalents increased to RM90.33 million as at end-December 2022 from RM83.96 million a year earlier while total borrowings jumped to RM52.85 million from RM36.05 million.

Shares of GUH rose two sen or 4.88% to 43 sen on Monday, giving the group a market capitalisation of RM120.52 million.