KUALA LUMPUR (Jan 3): ACE Market-bound aerosol paints producer DPI Holdings Bhd has acquired a new fully-automated aerosol filling line worth RM450,000 for its existing plant, which will increase its production capacity to meet rising demand. 

In a statement today, DPI said the new aerosol filling line is currently undergoing installation and trial runs, and is expected to begin operations in the next few months. Its current production capacity is 9.7 million cans.

DPI executive chairman and managing director Peter Chai @ Choy Mui Seng said the new aerosol filling line is part of the planned upgrade in the company's existing factory, where it is enhancing its three semi-automated filling lines to become fully automated, to achieve faster output and higher capacity. 

"The other two semi-automated lines are targeted to be upgraded and installed in the following 24 months," he said.  

"At the same time, we are intensifying our advertising and social media marketing plans to have a wider reach to potential customers. Altogether, we anticipate for our improved operations and enhanced marketing efforts to contribute positively to our future earnings," Chai added. 

The group also intends to construct a new factory with four new fully-automated aerosol filling lines, adjacent to its existing plant. Barring unforeseen circumstances, DPI said production in the new factory is set to commence in the first half of 2020.

Separately, it announced on Bursa Malaysia that it has achieved a net profit of RM817,000, on a revenue of RM10.05 million for its second quarter ended Nov 30, 2018 (2QFY19). 

This resulted in a lower cumulative net profit for the first six months of FY19 of RM3.41 million — compared with RM11.64 million in FY18 — despite revenue rising to RM25.62 million from RM24.86 million. The lower cumulative profit was mainly because the previous corresponding period recorded a disposal gain of RM8 million.  

"In addition, there was an increase in our listing expenses amounting to RM0.42 million in the six months FPE (financial period ended) Nov 30, 2018," DPI explained.

DPI is scheduled to be listed on the ACE Market of Bursa Malaysia on Jan 7, 2019. The public portion of its initial public offering (IPO) has been oversubscribed by 23 times.

The Johor-based aerosol paints producer said it received 7,368 applications for 585.2 million shares, worth a total of RM146.3 million, for the public tranche of 24.3 million shares.