Dolphin debuts on Bursa

KUALA LUMPUR: Dolphin International Bhd, a designer and manufacturer of palm oil milling machinery, made its debut on the Main Market of Bursa Malaysia Securities Bhd yesterday with its share price closing in 5.15% or 3.5 sen higher at 71.5 sen above its 68 sen issue price with 51.5 million shares traded.
"We believe in the long term vision of the company and if we bring value to the table, the market will reflect the value that we bring," chairperson Datuk Zaiton Mohd Hassan told a press conference after its listing ceremony here.
Dolphin is involved in the design, development, fabrication and sale of products for the palm oil milling machinery sector.
Currently, it has an orderbook of RM168.67 million for the provision of solutions and RM3.49 million for the sales of milling systems and milling software, which Zaiton described as "healthy". The orders secured locally and overseas are expected to last until the end of 2016.
Group managing director Eric Low Teck Yin said the group is constantly working towards improving its order book and has a mixed clientele of big and private millers, including Boustead Holdings Bhd and Sime Darby Bhd.
Low said it will focus on the opportunities in Malaysia and Indonesia, which supply 90% of the world's palm oil needs. It is estimated that there are over 1,000 palm oil mills in these markets, providing Dolphin significant business leads.
Zaiton said only a small number of mills have moved to an automated system hence the potential in these two markets is huge.
"We're in discussions with potential clients. Just concentrating on these two markets alone there's enough potential, because there are lots of mills to be upgraded (in terms of automation)," said Zaiton.
The Indonesian market contributed 22% of the group's revenue in 2014.
She said the company hopes to maintain its earnings growth of 20% (last year) or see an improvement in earnings this year.
On the weakening ringgit, it said the majority of the group's business is in the domestic market and that billing is denominated in ringgit, hence it would not impact on its bottom-line.
Dolphin's products and services are also exported to palm oil millers in Thailand, Columbia, Papua New Guinea, Myanmar and India.
Zaiton said the board is pleased with its opening price, which was at a 9 sen premium yesterday and will work hard to live up to market expectations.