Thursday 20 Jun 2024
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KUALA LUMPUR (Feb 8): Electronics products manufacturer Industronics Bhd is venturing into the halal food and beverage (F&B) and halal convenience store business in Hong Kong.

The group said it has acquired a dormant company in Hong Kong owned by Datuk Chu Boon Tiong, for HK$1 (61 sen), to undertake the new business. The company has been renamed as Halal Group Ltd (HGL).

Chu is also the executive director of Hong Kong-based stockbroking, asset management and credit firm Bluemount Financial Group Ltd, in which Industronics acquired a 10% stake in 2021. Chu, who also owns a 10% stake in Bluemount in his personal capacity, had joined the board of directors of the firm to spearhead its expansion in Southeast Asia.

In a filing with Bursa Malaysia on Thursday, Industronics said the acquisition of HGL is "anticipated to yield mutual benefits for both Malaysia and Hong Kong, notably through the availability of select Malaysian halal pastries and other halal products within the Hong Kong market".

It added that as Malaysia's halal certification is internationally recognised, the group is keen to expand Malaysia's halal F&B products across the region, starting with an initial focus on Hong Kong.

Industronics expects the new venture to contribute positively to its future earnings.

Industronics has been venturing into several business sectors outside of its principal activities. Besides the acquisition of HGL and the 10% stake in Bluemount, the group had in November 2022 bought a 50% stake in 5T3M Sdn Bhd for RM1 million, as part of its venture into the education industry.

Most recently, Industronics in October 2023 signed a memorandum of agreement with Echo Asia (Hong Kong) Ltd, an affiliate of Hong Kong-listed Echo International Holdings Group Ltd, and CHEC Construction (M) Sdn Bhd, a wholly-owned subsidiary of China Harbour Engineering Company Ltd, to negotiate a proposed collaboration to construct an international duty-free city on Pulau Langkawi.

Following the announcement, Industronics became Bursa Malaysia's 10th most briskly-traded stock on the next market day. The counter saw a trading volume of 49.65 million shares, over two times its 200-day average of 21.25 million shares.

On Thursday, Industronics closed 0.5 sen or 10% higher at 5.5 sen, with a market capitalisation of RM35.67 million.

Edited ByS Kanagaraju
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