Tuesday 19 Mar 2024
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GEORGE TOWN (May 27): JHM Consolidation Bhd plans to migrate from Bursa Malaysia's ACE Market to the Main Board by the year ending December 2018 (FY18), on prospects of a double-digit growth in the automotive light emitting diode (LED) segment.

Together with the group’s penetration into the aerospace LED sector by the fourth quarter of FY16, this will ensure JHM is able to attain a RM20 million profit after tax (PAT) in three to five years, said executive chairman and managing director Datuk Tan King Seng.

"The criteria to upgrade to the Main Board is to show a PAT of RM20 million in three to five years. With an outstanding FY15 results with a strong forecast demand in the automotive market, we target to transfer to the Main Board end of FY17 or beginning FY18," Tan said.

For FY15, the group returned to the black with a net profit of RM6.45 million against a net loss of RM1.1 million a year earlier, with revenue rising to RM131.3 million, from RM71.8 million.

This has been attributed to volume loading from existing customers; capacity expansion in design and manufacturing; and manufacturing of electronic printed circuit board via surface mount technology.

Tan said its automotive LED segment which contributes 80% to the group revenue, has an unbilled forecast orderbook of RM180 million for FY16.

"We supply first-tier automobile suppliers in the North American Free Trade Agreement (Nafta) countries, and Japan. We are looking into tapping the European market.

"Apart from that, we are penetrating into the aerospace market by producing interior lighting for commercial aircraft, including passenger and cargo cabins. We will be audited by a prospective customer in U.S. in June.

"We expect to get the global certification AS9100 this year, after the audit. Once we get the projects, it should last for 30 years," said Tan.

Meanwhile, JHM plans to stabilise the aerospace lighting segment before it expands into the mechanical parts for the sector, which would see a RM10 million capital expenditure for machinery next year.

"The project would involve making engine casing or non-moving parts for helicopter and jets, but we will only move into this after stabilising the aerospace LED business," he said.

Tan said the group expects the aerospace and automotive lighting segments to contribute 50:50 ratio to its revenue, within three years.

JHM shares closed 3.5 sen or 5.74% higher at 64.5 sen today, for a market capitalisation of RM79.3 million.

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