Friday 29 Mar 2024
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KUALA LUMPUR (Feb 5): Despite signing a term sheet to supply 3.5 million doses of a Chinese Covid-19 to the Malaysian government, shares in Solution Group Bhd did not receive the expected boost today.

Shares in the engineering and biopharmaceuticals company shed as much as 8.72% or 13 sen this morning. At 10.12am, shares in Solution Group were down 7.38% or 11 sen lower at RM1.38, translating into a market value of RM527.25 million.

This decline made it the 10th top loser on the local bourse as at the time of writing.

It is worth noting that shares in the company had skyrocketed from nine sen on Feb 5, 2020. That being said, it was trading below its all-time high of RM1.81 achieved on Dec 4, 2020.

Via a bourse filing yesterday, Solution Group announced that it had signed a term sheet agreement with the government to supply 3.5 million doses of a Covid-19 vaccine jointly developed by China's CanSino Biologics Inc and Beijing Institute of Biotechnology under the Academy of Military Medical Sciences.

The agreement was signed on Jan 29 with the Ministry of Health (MoH), serving as a stepping stone for a more definitive supply agreement to supply the Recombinant Ad5-nCoV vaccine for the prevention of Covid-19.

The government’s purchase of the vaccine is subject to its obtaining product registration and market authorisation of the vaccine by April 2021, the filing noted.

The agreement also specified that Solution Group will deliver the vaccine from its subsidiary's storage facility to a government-appointed central store or logistics partner.

On Jan 15, 2021, the group announced that shareholders had approved its move to diversify its business into the pharmaceutical business, it announced via a separate filing, with all those in attendance saying aye to the move.

For the nine months ended Sept 30, 2020 (9MFY20), the group posted a net profit of RM83,000, from a net loss of RM156,000 for the corresponding nine months of the previous financial year. Nine-month revenue, meanwhile, declined to RM12.21 million from RM13.67 million a year prior.

Edited BySurin Murugiah
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