Priceworth shares jump 10%; company is close to winning RM120mil contract

KUALA LUMPUR: Shares in Priceworth International Bhd jumped more than 10% in early trade on news that the group is close to securing a RM120mil annually contract from China-based manufacturer.

The counter jumped 10.81%, or two sen to 20.5 sen. It is currently the sixth most heavily traded counter with 5.3 million shares done. Its share value was fallen some 23% in the last one year.

Priceworth expects to clinch a five-year contract to supply 60,000 cubic metres of container flooring worth 192 million yuan (RM120mil) annually to Chinese manufacturer Foshan Zhengsen Woodworking Co.

Its wholly-owned unit Sinora Sdn Bhd inked a memorandum of understanding on Saturday for the intended supply of container flooring to the Guangdong-based Foshan Zhengsen.

The definitive agreement is expected to be signed within six months, it said.

The deal which is expected to be finalised in six months, will see the construction of a RM10.5mil new container flooring production line that will be funded through a RMB4mil advance payment from Foshan Zhengsen and hire purchase financing of RM8mil.