This article first appeared in The Edge Financial Daily, on January 5, 2016.

KUALA LUMPUR: Integrated interconnect solutions provider ConnectCounty Holdings Bhd (fundamental: 1.8; valuation: 0.3) is investing RM20 million to expand its manufacturing capacity in China this year.

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

In a statement yesterday, the group said research data indicated global sales of interconnects reached approximately US$190 billion in 2014, up 8.3% from 2013, and is anticipated to expand by a compounded annual growth rate of 6.1% between 2015 and 2020 to reach US$266.4 billion.

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

“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.

Recently, the group qualified as an Apple MFI (Made for iPhone/ iPod/ iPad) manufacturer, which means it can now produce Apple cables. It expects this to increase its profit margins.

It also expects to benefit from its status as an approved vendor to Technicolour Cisco.

In the nine months ended Sept 30, 2015 (9MFY15), ConnectCounty recorded a net profit of RM3.27 million on revenue of RM48.02 million, compared to net loss of RM1.38 million on a revenue of RM40.99 million in 9MFY14.

“We are on track to return to the black this financial year, after four financial years of consecutive losses,” said Ang, adding the group’s confidence stems from a favourable operating landscape and its move towards becoming a fully integrated cable house provider.