PROPERTY and construction-based Ageson Bhd has earmarked a recurring revenue stream that exceeds RM100 mil per annum following its appointment as the operator of smart vending machines belonging to Koperasi Belia Nasional Bhd (KOBENA).
This is made possible with the inking of a memorandum of understanding (MOU) between Ageson through its indirect wholly-owned subsidiary Ageson Net Sdn Bhd and KOBENA to operate and manage the latter’s 4,000 smart vending machines.
Apart from managing the operations of the smart vending machines, Ageson Net is also entrusted to secure and identify new suitable locations for the installation and operations of the vending equipment.
“We are confident in our collaboration given KOBENA’s large base membership of about 37,000,” enthused Ageson’s executive director Datuk Seri Chin Kok Foong.
“Products on sale at the smart vending machines are expected to meet the demand of the mass market. With sales target of RM2.3 bil per year, this will help to generate a sustainable recurring income for the group in the long-term.”
Given that Ageson Net will be entitled to the 5% of the target revenue, the group can expect to generate a recurring revenue of RM115 mil per year, according to Chin.
“Although we are still in the midst of negotiations with KOBENA, the MOU nevertheless sets out key terms of our collaboration,” he explained. “This will help accelerate the appointment process and a definitive agreement to formalise the appointment which is expected over the next six months.”
With KOBEENA’s strong track record since 1976 in addition to its collaboration with various local and international partners that consist of both government and non-governmental agencies, Ageson is confident that the collaboration bodes well for the long-term prospect of the group.
Recall that on Friday (Sept 30), another of Ageson’s indirect wholly-owned subsidiary, Ageson Retails Sdn Bhd also sealed a MOU with KOBENA to sell 4,000 units of smart vending machines with integrated Internet of Things (IoT) features to the youth cooperative.
A filing with Bursa Malaysia shows that the total value from the sale of the smart vending machines is estimated at RM120 mil based on the estimated cost of RM30,000 for each unit of the smart vending machine.
At the close of today’s trading, Ageson was down 1 sen or 3.03% to 32 sen with 1.25 million shares traded, thus valuing the company at RM100 mil. – Oct 3, 2022
