HWGB 9601 Share Price

Ho Wah Genting Bhd and its wholly-owned subsidiary, HWGB EV Sdn Bhd (HWGB EV), have undertaken several strategic moves together with its partners towards the introduction of electric vehicles (EV) in Malaysia. HWGB said that it has entered into separate MOU with Seiyong Motor Co Ltd, Xiamen Chief Electric Vehicle Co Ltd and Beijing Aitou Capital Management Ltd (AiTou) for the purpose of introducing electric vehicles in Malaysia.

Ho Wah Genting Bhd has obtained a full pharmaceutical product registration approval for its wholly-owned subsidiary, Astramern Sdn Bhd’s health supplement, Astramern Astra H, from the National Pharmaceutical Regulatory Agency (NPRA), Ministry of Health. The NPRA’s full approval for the health supplement and traditional medicine is granted for the maximum period of five years and renewable thereof, it said in a statement here today.

Ho Wah Genting Bhd’s share price declined 22% to 69 sen from 89 sen between Dec 7 and 14. Chinese national Zhang Yong, through ZY Sales & Distribution Sdn Bhd, ceased to be a substantial shareholder of HWG after disposing of his entire stake on the open market. It was only in October that Zhang emerged as a shareholder of HWG through ZY Sales & Distribution after acquiring 90 million shares or a 17.09% stake. HWG, which started the year as a penny stock trading at 11 sen, hit a high of RM1.29 on Aug 11 on speculative fervour surrounding the Covid-19 theme, but has been on a decline since.

US-based E-MO Biology Inc, the joint-venture partner of Ho Wah Genting Bhd’s wholly-owned subsidiary, HWGB Biotech Sdn Bhd, has obtained approval from the US Food and Drug Administration (FDA) to conduct phase IV clinical trials for a vaccine against Covid-19. In a statement, HWGB said HWGB Biotech would invest US$1mil (RM4.16mil) and would be entitled to 40% of the total net profit. With the FDA approval, HWGB chief executive officer Datuk Aaron Lim said the repurposing of the proven polio virus vaccines could fast track the Covid-19 vaccine development to save lives

The company has been on investors’ radar screens since the coronavirus outbreak, initially over the distribution of Covid-19 test kits. However, it upped its game in August when it declared that it was officially in the race to produce a vaccine. However, there is scepticism over whether its ventures will succeed. Leinves PLT chief investment officer William Ng expresses doubts over HWGB’s plan to produce Covid-19 vaccines. He says HWGB does not have an established track record in the pharmaceutical industry

The Group’s revenue for the current quarter increased by RM5.09 million or 10.6% compared to its immediate preceding quarter. The higher revenue in the current quarter was due to higher demand from existing customers.

The Group’s revenue for the current quarter increased by RM13.79 million or 40.1% compared to its preceding quarter. The higher revenue was due to higher demand from existing customers. The Group recorded a PBT of RM1.95 million in the current quarter as compared to a LBT of RM5.60 million in the preceding quarter. The higher LBT was mainly due to an allowance of expected credit loss on amount due from an associate of RM4.00 million and lower profit generated from the Group’s lower revenue recorded.

In Financial Year End 2018, the directors’ remuneration was 1.57 million. It was fair compared to average in listed companies, considering the employees’ remuneration of 19.2 million and auditor’s remuneration of 126 thousands