Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 4): Shares of China-based shoe apparels manufacturer Xingquan International Sports Holdings Ltd fell 5.51% after the company said it plans to spend 150 million yuan (RM99.22 million) to purchase 80 to 100 knitting machines, as part of its upstream expansion plan.

At 9.07am, Xingquan lost 3.5 sen to 60 sen with 287,500 shares done.

Xingquan's chairman and managing director Datuk Wu Qing Quan said the company planned to buy advanced equipment to venture into the production of knit fabric, which could be used in producing shoes and the inner lining of clothing.

"For the first phase, we will buy 80 to 100 knitting machines, which would cost about 150 million yuan and supported by 200 million yuan supporting cash flow," Wu said, after the company's annual general meeting here today.

He is optimistic that the knitting machines will help to increase the revenue of the company. He is expecting the knitting machines to increase the product range offered by the company, and contribute about 100 million yuan annually to the firm.

The purchase of the knitting machines is expected to be completed by the first half of 2016 (1H16), which would contribute to its financial year ending June 30, 2016.

(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.)

 

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