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GUH Holdings gears up for recovery in third quarter

30 Jun 2020 / 21:20 H.

GEORGE TOWN: GUH Holdings Bhd is optimistic of weathering the ill-effects of the Covid-19 pandemic as there are emerging signs that the global supply chain is on the mend.

Group chief executive officer and managing director Datuk Seri Kenneth H’ng Bak Tee said its manufacturing division, whose core product is printed circuit boards, is now operating at 60% capacity after reopening in April.

“By the third quarter, we hope to reach 80% production capacity and by year – end, 100%. We hope we can achieve it barring unforeseen circumstances,” he told SunBiz.

He said that its core client base, which is dominated by multinationals, Japanese as well as South Korean companies, remains intact. Most of GUH’s manufacturing products are meant for the export markets.

That said, the group was not able to fully escape the financial impact from the pandemic, reporting a loss after tax of RM2.98 million for the first quarter ended March 31, from a net profit of RM400,000 in the previous corresponding quarter, due mainly to weaker earnings reported by its electronics division and negative contribution from its utilities division.

Its manufacturing division saw a decrease in profit before tax to RM300,000 from RM 2.4 million, mainly due to the drop in global printed circuit board demand coupled with deferment of orders and shipments caused by the pandemic in Q1’20.

Revenue declined 23.6% to RM61.86 million, from RM80.97 million.

H’ng said the company, in an effort to mitigate the impact from Covid-19, was among the earliest to undertake cost-cutting measures – from rationalising wages to shorter production hours.

“We did not retrench but we were forced to undertake decisive measures such as salary reduction in the whole scheme of things.”

H’ngdisclosed that GUH’s prior commitments in investing into acquiring new technology and moving towards automation were instrumental in allowing the company to rebound fast when manufacturing reopened.

“Maintaining quality control in our products is our first priority despite the challenges that the pandemic cause to the supply chain.”

GUH, which is headquartered at the Bayan Lepas Free Industrial Zone, has namely three main divisions – manufacturing, property and utilities.

H’ng said that it has started to diversify into renewable energy and manufacturing high-end air conditioners, while finding new strategies to boost its property arm as the market had turned wobbly due to the pandemic.

Printed circuit boards are the core product of GUH Holdings’ manufacturing division

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