The development of an e-commerce fulfillment hub in Shah Alam qualifies the group for an investment tax allowance based on 60% of total capex to be offset against 70% of statutory taxable income.
PETALING JAYA: Freight Management Holdings Bhd (FMHB) has a defensive growth profile with undemanding valuations and consistent track record in paying out dividends.
It recently obtained an updated approval letter from the Malaysian Investment Development Authority (Mida) to carry out integrated logistics services and e-commerce fulfilment hub activities as an expansion project.
This involves a minimum investment of RM245mil in capital expenditure (capex) to be deployed over a five-year period. The tax savings from the project is expected to contribute positively to earnings, said RHB Research.
