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Hot stock: Addvalue Technologies shares surge on major pact inked
NEWS of involvement in a major communications project associated with China's "One Belt One Road" initiative brought life to the otherwise listless shares of Addvalue Technologies.
By 2.01pm, the group shares have surged 25 per cent to 6.5 cents with a hefty 20.79 million shares traded, after the morning trading halt was lifted at 10.45am.
This marked a rebound from a downward trend since the beginning of the year, when the stock was at a 52-week high of 8.5 cents in January.
Addvalue Technologies said on Monday morning that its wholly owned unit Addvalue Innovation Pte Ltd has entered into a memorandum of understanding (MOU) on Oct 23 with China International Security Solution Corporation Limited (CSS) to jointly develop and supply satellite communication-based solutions, products and services to meet the communication needs associated with the "One Belt One Road" initiative.
CSS is a company incorporated in Hong Kong, whose primary role is to focus on the construction of the China-Pakistan Economic Corridor (CPEC) by providing integrated security services including a variety of advanced communication solutions, with a view to safeguarding the investments and assets as well as the safety of personnel involved.
The "One Belt One Road" initiative comprises the land-based new Silk Road economic belt and the ocean-going "21st Century Maritime Silk Road" with six economic corridors. The CPEC project, part of the "One Belt One Road" initiative, aims to connect Gwadar Port in south-western Pakistan to Kashgar of China's north-western autonomous region of Xinjiang via a network of highways, railways, oil and natural gas pipelines and optic fibre networks.
Addvalue said that its strategic collaboration with CSS under the MOU is expected to forge a win-win partnership between the two companies, with Addvalue being tasked to design and supply the various satellite communication products to meet the complex communication and monitoring demands of CSS.