KUALA LUMPUR (Nov 9): As the glove mania loses momentum, Focus Dynamics Group Bhd, which has invested in an upcoming glove manufacturing factory through a listed associate, is now collaborating with Permaju Industries Bhd to venture into the electric vehicle (EV) business.
In a joint statement with Permaju, the food and beverage group said they are working together to set up an electric vehicle showroom with car park and EV charging facilities in Kuala Lumpur.
The two companies said the venture is “timely”, in light of the recent Budget 2022 announcement on EVs such as tax relief for purchases and charging facility subscription by users.
Permaju’s wholly-owned unit Cergaz Autohaus Sdn Bhd has inked a collaboration and tenancy agreement with Focus Dynamics Centre Sdn Bhd to open the “digital retail concept EV showroom” in the latter’s upcoming site in The Arch, Jalan Tun Razak. Focus Dynamics Centre is a wholly-owned unit of Focus Dynamics.
Their pivot into EV comes not long after the two companies separately announced glove ventures amid the rush of companies jumping onto the rubber glove bandwagon during the height of the Covid-19 pandemic.
In August, Focus Dynamics became the largest shareholder in Green Ocean Corp Bhd with a 16.67% stake it took up via a private placement of RM8.13 million, which Green Ocean undertook to fund its upcoming glove manufacturing facility.
Focus Dynamics is also an associate of AT Systematization Bhd — another new entrant in glove manufacturing — through their common shareholder Fintec Global Bhd. Fintec has an indirect shareholding of 26.19% in Focus Dynamics and another 8.13% in AT Systematization. The latter started manufacturing rubber gloves towards the end of 2020.
As for Permaju, which is involved in vehicle distribution, property and plantation, it incorporated Permaju Glove Sdn Bhd in June 2020. This was soon after it announced plans to sell air purification and sanitiser products after the Covid-19 pandemic struck.
The following month, Permaju said it was in talks for a potential glove manufacturing joint venture with Anzo Holdings Bhd, but no collaboration ever took off. Permaju shares, which was trading at a high of 81 sen in June 2020, gradually tapered to 17.5 sen apiece at end-2020. On Tuesday (Nov 9)'s close, the stock was trading at 7 sen.
Permaju shared a common shareholder — Cita Realiti Sdn Bhd — with Sanichi Holdings Bhd, which this year also announced plans to diversify into glove manufacturing. Cita Realiti owns 6.3% in Sanichi, according to the latter’s bourse filing dated Aug 23. Cita Realiti’s Companies Commission of Malaysia (CCM) filing showed it also owned shares in Permaju up until August 2020.
Permaju has been reporting losses since 2007, except for 2019, when it booked a net profit of RM6,000 on a revenue of RM16.26 million.
On the EV collaboration, Permaju’s executive director Tang Boon Koon said in the statement that the upcoming showroom will display more than 10 well-known luxury and premium EV brands.
Focus Dynamics executive director Tay Ben Seng said aside from tenancy in The Arch, the company will also provide its own robotic drink mixologist "MixoBot" for Permaju’s customers in the EV showroom.
At its current share price of 7 sen, up half a sen from Monday (Nov 8)'s close, Permaju has a market capitalisation of RM134.44 million. Focus Dynamics, whose shares closed unchanged at 5 sen, has a market capitalisation of RM318.61 million.