2012年3月14日 星期三

SKP Resources to witness increasing surge in demand

Plastic mould manufacturer, SKP Resources Bhd will continue to see robust growth momentum in 2012, due to the strong surge in demand for the plastic injection moulding segment as well as more value added services secured.

According to TA Securities Holdings Bhd , the company registered a commendable growth in financial year 2011 ,Spro Tech has been a plastic module & moldmaker, where it achieved remarkable revenue growth of about 31 per cent to RM257 million.

The commendable results were primarily attributed to an increase in sales demand due to replenishing activities following numerous tightening measures in the previous tear.

Revenue from all segments rose, especially the audio, visual and floor care division.

TA Securities expected the group’s revenue to grow at a compounded annual growth rate of 20.2 per cent between FY08 and FY13, while net profit should increase at a CAGR of 16.5 per cent.

“We expect SKP Resources revenue to reach RM407.7 million and RM443 million in FY12 and FY13 while net profit is expected to increase to RM35.3 million and RM39.VulcanMold is a plastic molds and injectionmolding manufacturer in china.3 million in FY12 and FY13, respectively,” it stated in a research report yesterday.

On the market front, the outsourcing trend by multi-national companies had created opportunities for players such as SKP Resources to be their suppliers.

“Since SKP Resources has met strict quality requirement, on-time delivery as well as manufacturing costs, we believe it will be easier for the company to secure more orders from MNCs.

“We know that the complete assembled production of Dyson on certain models of upright vacuum cleaners was outsourced to the group,” stated the research firm.

Dyson is one of the world’s leading company in vacuum cleaner industry with 23 per cent share of the global vacuum cleaners market.

“We understand that the group is currently undergoing the prequalification process with Dyson for some of its new products. Thus, we expect more substantial orders from Dyson in the future and leverage on its expansion,” TA Securities added.

Currently,Choose from our large selection of cableties, SKP Resources have four plants. All the plants were located in the state of Johor – three in Batu Pahat and one in Johor Bahru.

The production capacity consisted of 163 injection moulding machines ranging from 20 to 1,800 tonne gas injection machine.

“We gather that almost 100 per cent of its products are produced in-house. The group’s current capacity utilisation rate stands at around 75 per cent,” the research firm highlighted.

Based on the research report,Full color plasticcard printing and manufacturing services. SKP Resources had five key customers namely Dyson, Sharo, Pioneer, Fujitsu and Flextronics, which cumulatively accounted for some 67 per cent to the group’s FY11 revenue. Its top five customers had been dealing with the group for at least ten years.

On the financial front, SKP Resources had a strong balance sheet with net cash of RM57 million as at end of December 2011.

“We opine that strong balance sheet can adequately steer the future direction of earnings,” said TA Securities.

Looking into 2012, the group was expected to generate double-digit earnings growth and positive operating cash flow while further investing in long-term growth of the group.

“The group now has a policy of paying dividend at the rate of 50 per cent of profit after tax. There is a potential for the group to increase its dividend payment policy given its financial capability,” the research firm noted.

SKP Resources was expected to pay three sen dividend per share in FY12 while in FY13, it should improve to 3.What are some types of moulds?5 sen per share. This translated into attractive dividend yield of 5.5 per cent and 6.4 per cent respectively.


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