The Star Online: Business
The Star Online: Business |
- GUH powers ahead after lull
- Palm oil falls on worries of overwhelming supply
- Southeast Asia Stocks: Down, Thai shares reel
| Posted: 03 Jan 2014 08:00 AM PST HAVING completed its expansion for its printed circuit board (PCB) manufacturing operations in Penang and Suzhou, China, GUH Holdings Bhd is ready to bounce back after slowing down for three quarters since the fourth quarter of 2012. In the second half of that year, the group injected RM20mil to expand its production capacities of the Penang and Suzhou plants by about 50% to 807,000 sq ft from about 592,000 sq ft to position itself in the higher-value double-sided and multi-layered PCB segment. That expansion has paved the way for the group to go further today. Says group managing director Datuk Kenneth H'ng: "We are in the process of inking business contracts with an estimated value of RM70mil. "The contracts are for PCBs to be used in branded air conditioners, LED backlight of automobiles, general LED lightings, power supply management system, car and home audios, DJ mixer, air purifier, speakers and subwoofer," he says. Smartphones and touchscreen tablets are the major drivers of the PCB industry, according to Research and Markets, the world's largest research store in Ireland. Another significant driver is the demand for products with features that are more advanced, offering greater convenience, the report says. GUH is now working on securing new orders from existing and new customers in South Korea and Japan, says H'ng. Besides boosting capacity, the exercise also realigns production flow to increase efficiency, improve quality and yield, and upgrade the skills of the workforce. H'ng says increasing production of double-sided and multi-layered PCBs is necessary as there is demand from makers of consumer electronic products with advanced and user friendly features such as energy-saving refrigerators and washing machine. According to Research and Markets, the PCB growth is projected to increase at a compounded annual growth rate (CAGR) of 8.1% from 2012-2017, reaching an estimated US$93.9bil in 2017. On its non-core segments, GUH has secured RM40mil worth of water projects in the country. "These projects involve upgrading and expanding municipal water treatment plants in various states," he says. The projects will be undertaken by Teknoserv Engineering Sdn Bhd, a subsidiary of the group, which is equipped with a class A licence that allows it to undertake any project regardless of its contract value in the country. The group now seeks new water projects in the Asian region, according to H'ng. "We are interested in securing water concession projects to supply treated water. The other projects we are keen to do in Asia is to treat waste water before it is discharged into rivers. "The contribution from the water projects should boost our revenue for 2014. The water (business) should generate about 10% of the group's turnover this year compared to less than 5% last year," he adds. The market value of municipal drinking water, municipal wastewater treatment, and industrial wastewater projects in the world today is about US$63bil, according to the Global Water Intelligence report. "The driver of municipal water projects is in Asia Pacific. The increasing burden of environmental regulations, combined with the need to extract more value from the water cycle, is driving the market for municipal wastewater treatment," he says. On its property segment, GUH plans to launch RM185mil worth of landed properties, comprising semi-detached, bungalows, and terraced houses in Taman Bukit Kepayang this year. "We generated RM40mil in revenue from our sales in Taman Bukit Kepayang last year, compared to about RM30mil in 2012. "The property development business is expected to contribute 15% to the group's revenue last year, compared to 12% in 2012," he says. The present selling price of properties at Taman Bukit Kepayang ranges between RM400,000 and RM800,000, depending on types compared to about RM300,000 in 2008. This represents an increase of 25% to 30%. The growth in amenities, government buildings and recreational facilities has contributed to a rise in property value in the area since 2008, he says. On its undeveloped landbank in Taman Bukit Kepayang, H'ng says the group has 50ha left. "We plan to develop more residential properties in the area for the next four to five years. We have developed over 300 acres and completed over 1,300 units of landed residential and commercial properties over the past 10 years," he says. On its cash in hand, H'ng says the group has about RM175mil for business expansion. "We will focus on spending to acquire land and to use the funds as working capital for large-scale water projects," he adds. For the first nine months of last year, the group posted a pre-tax profit of RM22mil on the back of RM216mil turnover, compared to RM28mil and RM217mil in same period in 2012. "In revenue and profit, we expect to close slightly below 2012, due to the soft PCB market. The PCB market is expected to contribute 70% of the group's turnover for 2013, compared with 80% in 2012," he says. |
| Palm oil falls on worries of overwhelming supply Posted: 03 Jan 2014 03:29 PM PST
|
| Southeast Asia Stocks: Down, Thai shares reel Posted: 03 Jan 2014 03:26 PM PST BANGKOK: Most Southeast Asian stocks retreated on Friday, along with weakness in broader Asia, with Thai shares hitting a fresh 16-month closing low as domestic political protests escalated. The Thai SET index ended down 0.5 percent at 1,224.62, recouping some of its earlier losses amid short-covering in large-caps such as Advanced Info Service and Kasikornbank. It was down 5.7 percent on the week, the worst since August 2013 and Southeast Asia's worst performer. Concerns over a possible delay in the Feb. 2 election and active short-selling helped spur Thursday's sell-off when the index plunged more than 5 percent. Anti-government protesters have planned mass rallies to shut down Bangkok on Jan. 13, calling for political reform before the polls while the red-shirt United Front for Democracy against Dictatorship would stage a mass rally to counter the planned anti-government demonstrations. Stocks in Singapore ended nine sessions of gains, falling 1.4 percent on the day and 0.6 percent on the week, while Malaysia lost 1 percent to a near two-week low, with a weekly loss of 1.4 percent, its first in seven weeks. Vietnam inched up 0.2 percent as real-estate stocks gained after the central bank cut home loan rates, with a weekly loss of 0.2 percent. Indonesia slid 1.6 percent to a one-week closing low while the Philippines was down 0.6 percent, both ending the week around 1 percent higher. SOUTHEAST ASIAN STOCK MARKETS Change on day Market Current Prev Close Pct Move TR SE Asia Index* 379.67 383.33 -0.96 Singapore 3131.47 3174.65 -1.36 Kuala Lumpur 1834.74 1852.95 -0.98 Bangkok 1224.62 1230.77 -0.50 Jakarta 4257.66 4327.27 -1.61 Manila 5947.93 5984.26 -0.61 Ho Chi Minh 505.37 504.51 +0.17 Change on year Market Current End 2013 Pct Move TR SE Asia Index* 379.67 388.37 -2.24 Singapore 3131.47 3167.43 -1.14 Kuala Lumpur 1834.74 1866.96 -1.73 Bangkok 1224.62 1298.71 -5.70 Jakarta 4257.66 4274.18 -0.39 Manila 5947.93 5889.83 +0.99 Ho Chi Minh 505.37 504.63 +0.15 * The Thomson Reuters South East Asia Index is a highly representative indicator of stocks listed in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Stock Market Volume (shares) Market Current Volume Average Volume 30 days Singapore 133,084,900 190,505,640 Kuala Lumpur 96,226,900 110,109,077 Bangkok 5,265,556 5,322,809 Jakarta 2,186,911,500 2,946,130,917 Manila 74,931 71,601 Ho Chi Minh 55,600 92,815- Reuters- |
| You are subscribed to email updates from Business News To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 ulasan:
Catat Ulasan