KUALA LUMPUR (July 12): JayCorp Bhd is partnering with Hongkong-based Honsoar International Ltd (HIL) to manufacture and sell kitchen cabinets and bathroom vanity cabinets.
The two companies signed an agreement yesterday to form a joint venture, Honsoar Cabinetry Sdn Bhd, to undertake the business, JayCorp said in a filing with Bursa Malaysia today.
JayCorp will have a 60% interest in Honsoar Cabinetry, with HIL the remaining 40%. The joint venture is anticipated to commence business by the second quarter of the financial year ending July 31, 2020 (2QFY20).
JayCorp said the rationale for the joint venture is to leverage on HIL’s technical know-how on the production and marketing of kitchen cabinets and bathroom vanity cabinets.
“The joint venture will allow JayCorp to improve its range of products and offerings to new customers in the US, Canada and Mexico,” it said.
“We expect this business to contribute positively to the future earnings of JayCorp’s furniture division,” it added.
JayCorp’s shares price closed two sen or 2.11% higher at 97 sen today, giving it a market capitalisation of RM130.87 million.