KUALA LUMPUR (March 15): Shares of Cheetah Holdings Bhd surged to a record high of RM1.97 at noon break today, after it had announced a collaboration with two other listed companies — XOX Bhd and Lambo Group Bhd — to launch a digital shopping platform.
As at 12.30pm, Cheetah’s share price rose by 23.9% or 38 sen to RM1.97, with some 28.43 million shares traded. It has a current market capitalisation of RM251.41 million. This counter rocketed by 286% from 51 sen at the beginning of this year. Notably, shares of Cheetah had never gone beyond RM1 up until early February of this year.
Over the past five weeks — since XOX had purchased a 29.3% stake in Cheetah back on Feb 8 — Cheetah itself has gained some RM122 million worth of market cap.
Meanwhile, both Lambo and XOX were on the top active list today.
Lambo’s share price remains unchanged at 2.5 sen, while it tops the list as the most active stock on Bursa Malaysia today with 480.03 million shares traded. It has a market capitalisation of RM122.33 million.
XOX was up by half a sen or 7.14% at 7.5 sen, with 278.82 million shares done — making it the second most actively traded counter on Bursa Malaysia today. It has a market capitalisation of RM287.64 million.
Altogether, the three companies have collectively seen RM70.5 million worth of market cap increase from Friday’s closing.
Last Friday, the three companies entered into a tripartite collaboration to launch an online apparel store, Cheetah Online Store, by April 2021.
Under the collaboration, led by Mobile telco operator XOX, Cheetah will revamp its apparel brands, focusing on online business and the youth market, while XOX will lend its two million-strong customer base, its dealer network of over 20,000 dealers nationwide, and its e-wallet platform to provide customers with bundled discounts and transaction benefits.
Lambo Group, on the other hand, will lend its machine-learning model, last-mile delivery and explore collectively a bulk-breaking, inventory management and e-fulfilment silo operation “to cater for what would be an anchor client”.
Checks on the three companies’ most recent financial performances showed that Cheetah and XOX have been performing well despite the ongoing conditional movement control order.
According to Cheetah’s most recent filing on its financial results, the apparel maker had reported a 92% increase in net profit for the second quarter ended Dec 31, 2020 (2QFY21) to RM2.52 million from RM1.31 million a year ago, thanks to cost reduction measures, despite a 36.6% decline in revenue to RM24.24 million from RM38.23 million.
Cheetah is popular among Malaysians as it is a homegrown brand for sports and casual wear apparel.
XOX, which is a local mobile virtual network operator that provides mobile phone prepaid digital services with over 2.5 million subscribers, saw its net profit soared 15.8 times to RM5.65 million for the fourth quarter ended Dec 31, 2020, from RM358,000 a year ago, on the back of higher revenue and lower operating expenses.
Its revenue increased by 11% to RM72.63 million from RM65.16 million previously mainly due to the subscribers’ conversion from a prepaid plan to “Black Plan” (postpaid) with recurrent revenue.
Lambo reported a net loss of RM45.24 million in the three-month period ended Nov 30, 2020, while revenue stood at RM22.99 million. There is no comparison for the quarter as the company had changed its financial year end to May 31 from Dec 31.
Nonetheless, the group blamed the loss-making quarter on its China subsidiary, saying that the global pandemic has not recovered during the last quarter, and based on the forecast of the China operation, the prospect may be worse due to weaker export numbers.
Lambo is involved in providing digital solutions including e-commerce platform LamboPlace, last-mile logistics platform LamboMove and e-wallet LamboPay.
An article by The Edge Markets – Click here to read the official article.