VS Industry's HK unit to acquire China-based solar firm for RM12m

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KUALA LUMPUR (April 16): VS Industry Bhd said its Hong Kong-listed subsidiary VS International Group Ltd has entered into an agreement with Energy Ally Global Ltd to acquire Zhuhai Deyuan Energy Conservation Technology Co Ltd for RMB20 million (RM11.8 million).

VS (fundamental: 1.3; valuation: 2.4) has agreed to inject capital of RMB40 million into Zhuhai Deyuan, following the completion of the acquisition.

According to a filing with the exchange, Zhuhai Deyuan is currently involved in the construction and development of a rooftop solar power plant, mounted on the rooftop of a factory owned by a unit of VS in Zhuhai, People’s Republic of China, with power generating capacity of 10MW.

Besides that, Zhuhai Deyuan is also involved in two other rooftop solar projects, entailing the development of a 3.5MW and 0.7MW rooftop solar power plants.

“The acquisition will have no material impact on the net assets, earnings and gearings of the VS group of companies and are not subject to the approval of the shareholders of VS and of any other authorities,” said VS.

VS makes plastic moulded and electronics parts and components for speakers and remote controls units.

Its counter was unchanged today at RM4.07. Its market capitalisation was RM837.9 million.

(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.)