Elon Musk Of Thailand Anwar Give Ev Lift To Computer Forms

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Prime Minister Anwar Ibrahim and Energy Absolute CEO Somphote Ahunai (centre) flanked by members of Somphote’s delegation in Putrajaya on Jan 5. (Anwar Ibrahim Facebook pic)PETALING JAYA: Hardly a week goes by without the media receiving press releases on some obscure listed company announcing they have sealed agreement with foreign groups to explore opportunities in the burgeoning electric vehicle (EV) business.
If you aspire to jump ahead of the wannabees onto the EV bandwagon, it certainly helps if you can strike up a deal with an EV magnate known as the “Elon Musk of Thailand” and get a ringing endorsement from a newly minted prime minister.
That’s exactly the dream scenario that Computer Forms (M) Bhd found itself in recently. The company had last Sept 26 announced it entered into a heads-of-agreement (HOA) with Bangkok-listed Energy Absolute PCL (EA) to jointly produce and distribute electric vehicles, lithium-ion batteries and charging platforms.
For a low-profile company engaged in printing and distributing computer forms to starting up a joint venture company (JVCO) with the Thai EV giant founded by Somphote Ahunai, also known Thailand’s Elon Musk, is remarkable to say the least.
Somphote, who established Energy Absolute in 2006, has a net worth of US$4.3 billion (RM18.93 billion), according to Forbes.
Twitter effect
Somphote, who is CEO of EA, and his delegation paid a courtesy call on Prime Minister Anwar Ibrahim last Thursday. Immediately following the visit, Anwar shared about EA’s visit on his Twitter and Facebook accounts.
Anwar said EA, which has a market capitalisation of 380 billion baht (about RM45 billion), will collaborate with Computer Forms to develop green technology in Malaysia and EV technology transfer, among others.
He said the company will build an EV manufacturing facility for the transportation sector such as electric buses, electric school buses, electric boats, electric motorcycles, EV batteries, electric trains, electric cars, and others, worth a whopping RM5 billion.
Anwar’s tweet on the EA visit garnered almost 30,000 views while his Facebook post had 20,000 likes.
Later the same day, Computer Forms announced in a Bursa Malaysia filing it had entered into a joint venture agreement with EA’s subsidiary, EA Mobility Holding Co Ltd, to establish a JVCO. The company will sell, distribute, assemble and produce electric vehicles, transport and related accessories, and infrastructures including E-bus, E-truck, E-ferry and electric vehicle chargers.
Short-lived boost
News of the EA delegation’s visit with Anwar appeared to be well received by investors who ran up the share price of Computer Forms the same day.
It closed 30 sen or 11.54% higher at RM2.90 on Jan 5, giving the group a market capitalisation of RM756.9 million, a surge of almost RM80 million in its value during the trading session.
However, the sentiment boost was relatively short-lived. On the open the next day, the share price rose a further 5 sen to RM2.95 before tumbling all the way back to RM2.60 at the end of trading, essentially where it opened the previous day.
News of the proposed collaboration is not new as it was announced on Sept 26 last year. On the same day, it was also announced that bus and bus body manufacturer Gemilang International Ltd had presented a letter of intent on purchasing 200 units of electric buses from Computer Forms-EA JV company.
The 50:50 JVCO, called Energy Absolute Malaysia, is also looking at setting up a manufacturing plant in Malaysia in the second phase of its plans, said Computer Forms MD Justin Lim last week.
He said the factory would be set up either in Selangor, Negeri Sembilan or Melaka. “We plan to do so within 12 months after this (commencement of operations),” he added.
An unusual diversification
Given that Computer Forms has no known track record in the EV industry, and has been able to leap ahead of other local auto and EV-related businesses to clinch a partnership with EA is seen as quite an achievement.
But why EA decided to partner with Computer Forms, and what it brings to the table, is still a mystery as the various press releases by both companies did not address this.
FMT Business reached out to Computer Forms on its venture with EA but did not receive a response at press time.
Asked about this by FMT Business, Universiti Tun Abdul Razak economist Barjoyai Bardai acknowledged that although Computer Forms has no experience in EV, they are the “biggest producer of computer forms in Malaysia since 1972”.
“They are cash rich and are trying to move into EV as their present business is a ‘sunset’ one. Any partner will do, because the technology comes from Thailand, and EA is the biggest EV (player) in Thailand,” he said.
“In terms of expertise, Computer Forms will have to rely on EA, just like Proton relied on China’s Geely Automobile Holdings (Proton’s major shareholder) when they brought the marketing and expertise. Today, Proton cars are selling like hotcakes.”
Barjoyai hopes this venture is “a serious effort” and that Malaysia will not have to wait long for EV prototypes.
Bursa Malaysia queries Computer Forms
On Jan 5, Bursa Malaysia Securities queried Computer Forms on the heads-of-agreement with EA Mobility Holding Co Ltd, which the company announced in a Bursa Malaysia filing on Jan 3.
In response to Bursa Malaysia’s query on its total capital and investment outlay, it said the “current cost of investment in the JVCO is RM100”, being the total issued share capital.
It said the JVCO’s eventual issued share capital will be RM12.5 million, comprising 12.5 million ordinary shares. Computer Forms will contribute its portion of capital investment (50%) via internally generated funds and/or bank borrowings.
Bursa also asked for details on the E-Bus, E-Truck and E-Ferry to be produced and/or distributed by the JVCO.
“Both parties are still in the discussion on the types, brand and target markets for the intended products,” Computer Forms said in a Bursa Malaysia filing the same day. - FMT

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