DGB Asia soars 17% on Finance Ministry JV

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KUALA LUMPUR (Apr 14): DGB Asia Bhd soared as much as two sen or 17% to 14 sen after the firm announced a planned joint venture (JV) with Rofarez Solutions Sdn Bhd, a Finance Ministry-linked company.

The JV involves a collaboration in cloud-based business solutions. Cloud computing uses Internet-based remote servers to store and manage data.

At 10.18am, DGB Asia (fundamental: 1.65; valuation: 0.3) wiped off part of its gains to trade at 13 sen with some 78.27 million shares changing hands.

The stock was the second most actively traded entity across the bourse. DGB Asia's current share price compares to about six sen on Dec 16 last year.

Yesterday, DGB Asia said in a filing with Bursa Malaysia it had signed a memorandum of understanding (MOU) with Rofarez.

The MOU records both companies' intention to form a JV, which would undertake the distribution, implementation and service of cloud-based business solutions.

DGB Asia and Rofarez's MOU come at a time when Malaysia is introducing the goods and services tax (GST).

The GST has been implemented since April 1 this year.

(Notes: 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.)