Kian Joo: Export market key revenue booster

PETALING JAYA: Kian Joo Can Factory Bhd, which has budgeted a capital expenditure (capex) of RM450 million this year, is looking to boost its export market, which it sees as vital to achieving double-digit revenue growth in 2017.

Given the current economic conditions and with local players focusing more on the domestic market, CFO Ooi Teik Huat is of view that the export market is a key revenue booster.

“The Malaysian market is quite saturated; in order for us to grow, the export market will be something we really need to look into,” Ooi told reporters after the group’s AGM yesterday.

The export market contributed about RM250 million of its total revenue which was at RM1.72 billion in 2016.

Last year, the company’s net profit declined 2.1% to RM128.61 million from RM131.31 million while revenue increased 7.2% to RM1.72 billion from RM1.60 billion.

Kian Joo currently exports tin cans, aluminium cans, contract packing and carton boxes to countries in Asia, Africa and Europe, with the likes of Australia, Ghana, the Philippines, Ireland, New Zealand, India, Bangladesh and a few others.

It has 18 manufacturing plants in Malaysia and three in Vietnam.

In addition, the group is in the midst of expanding into Myanmar, where its two plants are expected to be ready within a year.

Last year, Kian Joo announced plans to invest RM90 million as part of an expansion plan into Myanmar with the construction of a carton factory and a tin manufacturing factory. Operations are expected to start by the fourth quarter of next year.

The company has deployed about US$23.5 million (RM102.93 million) for the plants with an estimated additional RM350 million to be pumped in. It will be financed with bank borrowings and internally generated funds.