Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 4): Integrated interconnect solutions provider ConnectCounty Holdings Bhd is investing RM20 million to expand its manufacturing capacity in 2016, specifically for its China facility.

In a statement today, the group said data compiled by Infobusiness Research & Consulting Sdn Bhd indicated global sales of interconnects reached approximately US$190 billion in 2014, up 8.3% over the previous year.

Moving forward, global sales are anticipated to expand by a compounded annual growth rate of 6.1% between 2015 and 2020, reaching US$266.4 billion.

An interconnect is a cable connection that seamlessly connects two or more devices. One example is the Universal Serial Bus (USB).

"ConnectCounty is well positioned to tap this industry uptrend because of our experience and expertise as well as the positive headways we are making to expand our capacity while penetrating new markets and industries," said the group's executive director Ang Chuang Juay in the same statement.

The group's China facility manufactures custom cable assemblies, wire harness, USB cables, audio and video cables, computer peripheral cables, custom cables and flat cable assemblies.

ConnectCounty also plans to expand its workforce in China by close to 40% by the end of 2016.

According to Ang, more and more people are accessing content via a multitude of platforms, be it over laptops, television, gaming consoles or mobile phones.

"Interconnect devices are integral towards delivering content seamlessly over these contemporary consumer electronics," Ang explained.

"The automotive sector is also causing an uptick in demand for interconnect devices. In fact, it has become the biggest end-product market for interconnects as the devices are used in various applications, ranging from lighting to safety controls. As more and more automakers adopt advanced electronic systems in their products, demand [for] interconnects can only increase further," he added.

Recently, the group also officially qualified as an Apple MFI (Made for iPhone/ iPod/ iPad) manufacturer, which means that the company can now produce all Apple cables under this licence. It expects this to further increase its profit margins in the foreseeable future.

"ConnectCounty is [also] expected to benefit from its status as an approved vendor to Technicolour Cisco, number one global market leader with €3 billion (RM14 billion) in annual sales and 60 million devices shipped annually," he added.

In the nine months ended Sept 30, 2015 (9MFY15), ConnectCounty recorded a profit after tax of RM3.27 million on the back of a revenue of RM48.02 million, compared to a loss after tax of RM1.38 million from a revenue of RM40.99 million recorded in the preceding year's corresponding period.

"All in all, we are on track to return to the black this financial year, after four financial years of consecutive losses. We are confident of achieving greater heights of success in the foreseeable future due to a favourable operating landscape and our move towards becoming a fully integrated cable house provider," Ang concluded.

As at 3.31pm, shares in ConnectCounty were trading at 18 sen, up 0.5 sen or 2.86%, giving it a market capitalisation of RM37.9 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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