KUALA LUMPUR (July 28): Rhone Ma Holdings Bhd (KL:RHONEMA) surged on Monday to its highest in nearly 10 months, after the animal health products maker announced a RM15.64 million contract.
The stock climbed as much as 11.5 sen or close to 19% to 73.5 sen, its highest since Oct 1, 2024. At 9.30am, Rhone Ma was trading at 73 sen, giving the company a market capitalisation of RM161 million. More than 2.7 million shares changed hands so far, already the counter’s most active day in nearly a year.
“We are positive on Rhone Ma’s latest contract win,” according to Public Investment Bank (Public IB), the sole research house covering the stock. The house also maintained its “outperform” call on Rhone Ma.
The project carries an initial investment cost of RM41.4 million, to be funded via equity injection by shareholders of the joint venture. Rhone Ma’s stake in the project is through its 49%-owned subsidiary A2 Fresh Holdings Sdn Bhd.
The plant at the Jemaluang Dairy Valley Complex in Mersing, Johor will process up to 4,000 litres per hour of fresh milk and recombined milk, according to Rhone Ma.
Rhone Ma’s financial commitment for the project, in which it effectively holds only a 17.2% stake, would be “manageable”, given its healthy cash pile, Public IB said.
Earnings from the project will come in materially until 2026-2027, following site handover scheduled for next year, the house noted.