KUALA LUMPUR (April 13): Metronic Integrated System Sdn Bhd (MISSB) — a wholly-owned subsidiary of Metronic Global Bhd, and UMK Business Ventures Sdn Bhd (UMK) — a wholly-owned subsidiary of University Malaysia Kelantan, has entered into an agreement for the tender submission to the government of Malaysia today, for a 100 MW solar power plant project in Kelantan.

"The board of directors of Metronic wishes to announce that MISSB, a wholly-owned subsidiary of Metronic, had on April 13, 2015 entered into an agreement with UMK for the tender submission to the Government of Malaysia for the 100 MW solar power plant Kelantan Project (JVA)," it said in a filing to Bursa Malaysia today.

MISSB holds 70% of the shareholding in the JV company, while the remaining 30% is held by UMK.

According to Metronic (fundamental: 1.25; valuation: 0.6), the JVA will be constructed over a 20-year period “on an identified location at Bachok occupying 300 acres, and to produce electricity via photovoltaic solar power plant.”

"The main targeted purchaser of electricity is Tenaga National Bhd," it said.

The JV company, which name be mutually agreed by the parties, shall have an estimate paid up capital of RM500,000 divided into 500,000 ordinary shares of RM1 each, it added, noting the paid up capital of the company may be increase from time to time as the needs arises, and will be subject to shareholders' approval.

Metronic said the JV is in line with its current business direction and strategy to increase its revenue.

It also said it will fund its investment in the JV company, through internally-generated funds.

Metronic’s counter rose 11.76% or 1 sen to close at 9.5 sen today, for a market capitalisation of RM59.86 million, with 12.98 million shares having changed hands.

(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.)