KUALA LUMPUR (Sept 20): Furniture manufacturer Rhong Khen International Bhd, formerly known as Latitude Tree Holdings Bhd, plans to collaborate with PTT Synergy Group Bhd (PTTS) to establish a system pallet business amid rising demand for efficient supply chain management and logistic services within an automated intralogistics warehouse.

In a filing with Bursa Malaysia on Wednesday, Rhong Khen said it has entered into a memorandum of understanding (MOU) with PTTS, formerly known as Grand Hoover Bhd, to form a collaboration to establish the system pallet business.

PTTS and its group companies are principally engaged in property development and construction, trading and distribution of sanitary wares, fitting for pipes and ceramic tiles.

The MOU will expire in 12 months.

"The MOU is not expected to have any material effect on the group's earnings per share, net assets per share and gearing for the financial year ending June 30, 2024, and issued and paid-up share capital and substantial shareholders’ shareholdings," said Rhong Khen.

The MOU is not subject to the approval of Rhong Khen shareholders.

At the midday break on Wednesday, Rhong Khen shares closed unchanged at RM1.36, giving it a market capitalisation of RM264.33 million.