Ni Hsin, MyAngkasa in stainless steel cookware JV

KUALA LUMPUR: Cookware manufacturer Ni Hsin Resources Bhd signed a shareholders agreement with MyAngkasa Holdings Sdn Bhd yesterday to set up a joint-venture company (JVC) to market and distribute stainless steel cookware.
Ni Hsin has a 70% stake and MyAngkasa Holdings 30% in the JVC called MyAngkasa Ni Hsin Sdn Bhd, which will market and distribute stainless steel cookware under the brand name of "Pentoli". The partners are eyeing RM10 million sales for the JVC by the end of 2016.
MyAngkasa Holdings is a unit of National Cooperative Bhd (Angkasa), the apex body of the cooperative movement in Malaysia, which represents about 12,000 cooperatives nationwide.
MyAngkasa Ni Hsin managing director Datin Ida Suzaini said the new brand has the potential to enter foreign markets, adding the company has targeted to make its debut in China by January next year.
"It is a large enough market to provide lucrative returns and we feel that now would be the right time for a brand like this to make its debut in China, given the consumer trends and behaviour patterns among the mainland Chinese," she said.
Speaking to reporters after the signing ceremony, Ni Hsin managing director Chen Shien Yee said the joint venture will provide Ni Hsin with the opportunity to leverage on the customer network of Angkasa and help widen its reach to other markets.
In line with this, he expects local sales to increase to 20% of the company's total sales by the end of next year, from 11% currently. At present, exports contribute about 89% to the company's sales.
Chen said Ni Hsin currently exports its products to markets such as Japan, Korea, Taiwan, China, Hong Kong, Thailand, Indonesia, Europe, the US, Canada and Australia.

"Ni Hsin has an array of diverse and innovative products in the pipeline to be offered, and we are confident that this will be the catalyst for the company's growth," he added, noting that products under the "Pentoli" brand include pots, pans, woks and pressure cookers.

Chen said the JVC has agreed to adopt a dividend policy to declare and pay out not less than 20% of its balance net profit as dividend to shareholders.
Under the shareholders agreement, Ni Shin will be responsible for managing the business operations, and to manufacture and supply premium multiply stainless steel cookware and related products to the new company.
MyAngkasa Holdings will make available, or have Angkasa make available, its customer network, including its online shopping portal, for the marketing and distribution of the new company's products.
Ni Hsin returned to the black in the third quarter ended Sept 30, 2015 with a net profit of RM1.54 million, due mainly to realised foreign exchange gains, from a net loss of RM159,000 in the previous corresponding quarter. Revenue grew 17.3% to RM12.02 million from RM10.25 million previously.

The cookware business contributes about 53% to Ni Hsin's revenue, with the remaining coming from clad metals (24%), convex mirrors (22%) and other business segments (1%).