Xinghe dips 17% on profit taking after rising ahead of JV news

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KUALA LUMPUR (Apr 1): Xinghe Holdings Bhd tumbled as much as 17% on profit taking following earlier gains. The stock had earlier advanced ahead of an announcement on a proposed collaboration with a Jordan-based firm.

Yesterday, Xinghe (fundamental: 1.2; valuation: 1.2) said it had inked an exclusivity agreement with Arab Supplier Fabrication and Retail Sdn Bhd (Asfar).

The exclusivity agreement precedes a joint venture (JV) arrangement with Asfar to set up a new edible oil factory in Malaysia's Port Klang Free Zone (PKFZ). The JV will also explore export opportunities for Xinghe's edible oils in the Middle East and Africa.

Today, Xinghe shares fell as much as two sen to 10 sen before reducing gains. At 12:30pm, the second most active entity on the exchange settled at 10.5 sen, with some 63 million shares changing hands.

Xinghe's share trade resumed today following a suspension yesterday in conjunction with the announcement.

Prior to the suspension, Xinghe rose 1.5 sen or 14% to close at 12 sen last Monday.

(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.)