KUALA LUMPUR (Nov 11): Prolexus Bhd, an outsourced garment manufacturer for Nike Inc, has set up a new subsidiary in Hong Kong as part of its "expansion plan".

In a filing with Bursa Malaysia today, Prolexus said that it had incorporated a new wholly-owned subsidiary named Trans Pacific Textile (HK) Ltd on Oct 26.

"Trans Pacific will be principally involved in investment holding. The existing paid-up capital of Trans Pacific is US$100,000 (approximately RM430,000). The incorporation of Trans Pacific is in line with the group's expansion plan," said Prolexus.

It added that its board of directors was of the opinion that incorporating the company was in the best interest of the company.

As the incorporation would be funded through internally generated funds, Prolexus said the exercise would not have any material effect on its earnings per share, net asset per share, gearing, share capital, or substantial shareholding structure for its financial year ending Jul 31, 2016 (FY16).

In Prolexus' FY14 annual report, its chairman Ahmad Mustapha Ali said the company will be focusing on its core business of apparel manufacturing, apart from considering other businesses with "prospects of yielding good return on investments".

Prolexus, a recurring stock highlighted by Insider Asia on The Edge Financial Daily and theedgemarkets.com, closed three sen or 1.17% lower at RM2.53 today.

Its market capitalisation of RM291.1 million today is more than double what it was last year.

(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.)