Hot stock: HGH hits 2.5-year high after announcing blockchain platform tie-up

SHARES of Catalist-listed HGH Holdings hit a 2.5-year high on Tuesday morning after the concrete manufacturer announced a tie-up with AAEX to explore developing a blockchain computing power financial service platform.

The counter, which resumed trading on Tuesday, surged as much as 26.7 per cent or S$0.004 to S$0.019 right after the market opened. The last time the counter closed near this level was in March 2019.

HGH was also the third most traded traded by volume on the Singapore bourse as at 10.04am, with 56.9 million shares changing hands. The shares were trading 13.3 per cent or S$0.002 higher at S$0.017 at the time.

The company said in a bourse filing on Monday night that it entered into a non-binding memorandum of understanding (MOU) with AAEX on Nov 5 for the potential blockchain platform - which will integrate computing power services, financial services, circulation services and information services.

AAEX, together with its affiliated and associate companies, is involved in cryptocurrency mining, centralised and decentralised cryptocurrency and payments businesses, integrated e-wallets, super apps and e-commerce megamalls, to name a few.

Under the MOU, HGH and AAEX have agreed to negotiate exclusively for four months on any potential joint venture, investment or collaboration relating to mining cryptocurrencies in Singapore, before finalising any terms or entering into any definitive agreements.

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HGH said the proposed collaboration is part of the group's corporate strategy to diversify returns and achieve long-term growth.

"The board believes that the proposed collaboration will provide the group with new revenue streams and improve its prospects, so as to enhance shareholder's value," it added.

HGH's businesses at present include leasing and service income, supplying and manufacturing concrete products, as well as underground cable installation and road reinstatement services.

Before the announcement on Monday, HGH called for a trading halt after receiving a query from the Singapore Exchange over "unusual volume movements". Before the halt called at 4.55pm, the counter was trading 25 per cent or S$0.003 higher at S$0.015, with 92.1 million shares changing hands.