Pursuant to Malaysia’s Movement Control Order which commenced from May 12 and is effective until June 7 (MCO 3.0), Aspen Group Holdings has released a business update on implications of the MCO 3.0 on its main business segments on May 17.
For its glove-making business, Aspen notes that the staff of its subsidiary Aspen Glove that directly involved in the production lines is allowed to work at full capacity taking into account strict compliance to the prescribed SOPs. Aspen Glove currently uses three teams working eight-hour shifts to provide 24/7 coverage. For management staff, 70% are required to work from home.
To that end, Aspen states that despite a slight delay in the commencement of production of Phase 1(a), Aspen Glove is “well on track to meet its contractual obligations”, with first shipments scheduled for delivery by end of May.
SEE:Aspen Glove retracts announcement on contract with Honeywell
Meanwhile, works for its Phase 2 manufacturing facility are ongoing and are expected to complete by October. Production of gloves under Phase 2 is expected to commence in stages from 4Q2021 onwards and is expected to achieve full production capacity by 1Q2022 with 24 production lines.
For its property development business, Aspen notes that construction activities of its ongoing developments, namely Vivo Executive Apartment and Viluxe, will be “affected slightly” by the MCO 3.0.
Aspen says it plans to launch four projects in 2HFY2021 - the second phase of Viluxe, a new residential development in Aspen Vision City, Penang a high-rise development in Tanjung Bungah, Penang and a serviced apartment in Kajang, Selangor - with aims of leveraging on available government incentives.
In addition, the group’s logistics and warehousing associate Global Vision Logistics, together with LOGOS SE Asia, are targeting to launch a phased development of an integrated logistics and warehousing facility in Shah Alam, Selangor. The total gross leaseable area for the five planned five warehouse blocks will be approximately 589,000 square metres upon completion.
As at 9.25am, shares in Aspen are up 1 cent or 4.88% higher at 21.5 cents.