JHM acquires leasehold land with buildings in Sungai Petani for RM21 mil

• JHM said the acquisition is a critical investment for the company’s expansion.

KUALA LUMPUR (Sept 6): JHM Consolidation Bhd is buying a leasehold land with two factories in Sungai Petani, Kedah for RM20.9 million.

In a filing with Bursa Malaysia on Friday, the automotive lighting product manufacturer said it has signed an agreement with Megaready Industries Sdn Bhd (MISB) for the purchase of the property.

JHM said the acquisition is a critical investment for the company’s expansion.

“As JHM continues to grow, the demand for additional manufacturing space becomes increasingly essential to support its ongoing and future growth efforts

“Furthermore, the board of directors is confident that the acquisition will help JHM maintain its growth momentum and better position the JHM group to become a global leader in the vertically integrated electronics manufacturing services (EMS) industry,” the company said.

JHM said the land, spanning over 12,140.6 sq m or three acres, has a lease duration of 60 years expiring in 2050. MISB is planning to apply to Perbadanan Kemajuan Negeri Kedah to extend the lease to 2089, it said.

There are two industrial buildings on the land, including a new one that was completed recently.

"The existing building which was constructed in the year 2015 consists of a single-storey factory building together with an office and a lettable area of approximately 1,987 square metres. The new building consists of a single-storey factory building together with a double-storey office and a lettable area of approximately 3,891.89 square metres.

“MISB has agreed to sell and JHM has agreed to purchase the existing lease, the extended lease, the existing building and the new building on terms and conditions of the agreement," said JHM.

The company said the acquisition will be funded through a combination of internally generated funds and bank borrowings.

“JHM is unable to procure the net book value of the property as JHM is not privy to this information at this juncture,” it added.

Shares in JHM closed unchanged at 49 sen on Friday, giving the company a market capitalisation of RM296.94 million.

For the first half ended June 30, 2024, JHM slipped into the red with a net loss of RM9.99 million compared with a net profit of RM8.47 million a year earlier, due to under-utilisation and absorption of fixed cost.

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