KUALA LUMPUR (Dec 22): Carbon steel fastener manufacturer Chin Well Holdings Bhd intends to expand its revenue base by widening the group’s product range and targeting new export markets.
Chin Well managing director Tsai Yung Chuan said the group added two new products to its range in 2014, namely high security fences and gabion, which complement its main fastener manufacturing segment.
“These new products have high export potential and are timely for us to enhance our proposition in the competitive market. We are witnessing steady demand for high-security fencing from the domestic market and have also received orders from Australia, Taiwan and the Middle East, which will will be fully delivered in the next six months,” he said in a statement today.
“We hope to leverage on this initial success to expand our share in these countries, as well as enter into new markets in the South East Asian region in the near future,” said Tsai.
He added that demand for gabion, which are steel cages or structures used to prevent soil and riverbank erosion and are often used in the construction of highways and tunnels, is expected to rise further in the local market.
This is in view of the upcoming implementation of various government projects in the construction and river rehabilitation sectors, he noted.
On the group’s fastener segment, Tsai said Chin Well had established strong customer relationships with the largest Do-It-Yourself (DIY) retailers in Germany, France, US and the UK.
“With the sustained demand for DIY fasteners, we intend to expand our production capacity for small screws by expanding our workforce. We have recently received regulatory approval to employ additional foreign workers who will be on board in early 2015 to help towards meeting the higher demand,” he said,
He added that while Europe remained Chin Well’s largest export market, the group believed that targeting new markets in the region would mitigate business prospects in the long term.
Chin Well shares, which were trading at RM1.32 a year ago, peaked at RM1.72 on November 13.
At 2.51 pm today, the shares were trading at RM1.40, giving it a market capitalisation of RM381.5 million.
According to theedgemarkets.com, Chin Well has a 2.4 valuation score out of 3, with 3 suggesting that a company gives higher than market average returns and is trading at a lower than average valuation.
The site gave the company a fundamental score of 2.1 out of 3, with 3 suggesting that it is profitable and has a strong balance sheet. It also rated Chin Well’s counter at 2 in terms of volatility on a scale of 1 to 5, with 1 being the least volatile.