KUALA LUMPUR (Mar 16): KNM Group Bhd has formed a joint-venture company (JVCO) with a South Korean firm to undertake biomass-waste projects.

In a statement to Bursa Malaysia today, process-equipment manufacturer KNM (fundamental: 0.85; valuation: 2.4) said the firm and Hansol EME Co Ltd had formed JVCO Hansol KNM Greentech Sdn Bhd.

"The JVCO will complement KNM’s existing engineering, procurement, construction and commissioning businesses to undertake specific projects with Hansol.

"JVCO's intended principal activities are the undertaking of engineering, procurement and construction of mutually identified biomass-waste projects," KNM said.

Under the JV agreement, KNM and Hansol will own 40% and 60% respectively in Hansol KNM, according to KNM.

KNM said Hansol, being the controlling shareholder, would spearhead the business development of the JVCO.

"Hansol shall act as the leader of the JVCO in the negotiation and successful implementation of any business opportunities of the JVCO, and to execute the overall management and coordination of the parties’ combined activities," KNM said.

KNM shares fell 5.5 sen or 7% at 12:30pm to settle at 72.5 sen for a market capitalisation of RM1.17 billion.

The stock had risen 48% this year, significantly outperforming the FBM KLCI's 1% advance.

(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.)