KUALA LUMPUR (Oct 22): MNC Wireless Bhd is eyeing Petroliam Nasional Bhd (Petronas)'s digital advertising projects via a planned collaboration with the national oil company's licensed advertising firm.

In a statement to Bursa Malaysia today, mobile-technology specialist MNC said it signed a memorandum of understanding (MoU) with Petrowangsa Sdn Bhd with the intention to provide the latter multimedia advertising and digital-technology solutions.

"The MoU is not expected to immediately have material effects on the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholding of MNC for the financial year ending Dec 31, 2015.

"The MoU does not constitute any legal binding obligation between the parties until definitive and binding agreements are executed between MNC and Petrowangsa," MNC said.

According to MNC, Petrowangsa is a Petronas licence holder for various service categories, which include media advertising.

At the MoU signing ceremony here, MNC chief executive officer Christopher Tan Chor How told reporters the services involved mobile application and platform development, besides website development.

Tan said MNC would also offer its expertise in account management, e-commerce, bulk messaging, social media and digital advertising.

"This MoU outlines the general intentions, principles and guidelines to be observed as a means of collaboration between our two business entities for the provision of multimedia advertising and digital technology solutions services," he said.

Petrowangsa is run by Datuk Azrulnizam Abdul Aziz, who was previously the executive director cum chief executive officer of Al-Rajhi Bank Malaysia. Petrowangsa's management team includes Azrulnizam's brother Datuk Azizul Kama Abdul Aziz.

MNC shares settled unchanged at 26 sen at 12.30pm for a market value of RM24.6 million on thin trades of 70,000 units.

It is interesting to note that the stock had gained substantially over the past one month. At yesterday's closing price of 26 sen, MNC had gained 44% from the 18 sen recorded on Sept 25.

(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.)