Denko Industrial sees higher revenue of RM100m for FY16

PETALING JAYA: Denko Industrial Corp Bhd said it sees a higher revenue of RM100 million for its financial year ended 2016 (FY2016), explaining that the current strong US dollar has further strengthened its pricing competitive advantage as its products are export-based.
For financial year ended Mar 31, 2015 (FY2015), the group saw its net profit increased to RM3.09 million, against a net loss of RM3.10 million a year ago.
Revenue also up by 7.56% to RM80.08 million from RM74.45 million previously, mainly driven by its manufacturing division in Malaysia.
In a statement last Friday, the consumers and industrial products' manufacturer said it plans to explore and diversify into different industries, such as plantations and battery manufacturing, in order to enhance its shareholder's value.
The group which was public listed on April 11, 1991, is currently involved in plastic injection moulding, consultancy service, as well as overseas and domestic multi-branding can food trading.
"With Indonesia government's intention to increase local content in automotive, electronics and IT, we are expanding our business to Indonesia and setup a sophisticated injection moulding and mould fabrication factory in Jakarta, modernizing with latest equipment technologies consisted of clean room, twin shots (2 colours moulding) and high efficiency of auto spray painting processes to fulfill the local content requirement."
"Furthermore, our existing customers in Indonesia have urged Denko to expedite the expansion program for bigger business volume absorption," it added, noting its units PT. Winsheng Plastic and Tooling Industry (Indonesia) is expected to generate promising financial results in coming financial year.
It said buoyancy in the demand for consumer electronics also has fueled the group's business.
Denko's customer base comprised mainly of multi-national companies such as Dyson, JVCKenwood, Pioneer, Fujitsu, Schneider Electric, Autoliv Hirotako and Olympus.
"We focus on five key business segments, including automotive, electronic and electrical, computer and laptop, medical healthcare and industry plastic," it added.
Denko currently supplies its products to South East Asia, Japan, China, Australia, New Zealand, United State and Europe.