KUALA LUMPUR (Sept 18): Power tool distributor Jasa Kita Bhd aims to grow its revenue by 10% for its financial year ending March 31, 2015 (FY15), amid a challenging and competitive market.

Ong Bing Yap, executive director of Jasa Kita, said the group had always aimed for 10% year-on-year growth. He, however, said a bigger market share might be needed to achieve the FY15 target.

“To achieve 10%, we may have to snatch some market share from the competitors, as organic growth may not be enough to increase sales,” Ong told reporters after Jasa Kita’s annual general meeting (AGM) today.

According to Ong, Jasa Kita's growth target might be “a bit ambitious”, unless the company had new products or an edge over its competitors.

Currently, Jasa Kita is importing tools from producers in China and Japan. Jasa Kita is also looking into the feasibility of collaborating with its counterparts in neighbouring countries, including Indonesia and Thailand.

Going forward, Ong said Jasa Kita's main hurdles include the large number of players in the market and also a declining margin.

“There are too many players in the market. Margins continue to be squeezed due to competition, especially from the Chinese products,” he said.

On the planned goods and services tax (GST) in Malaysia, Ong said there would be a small increase in the price of its products.

But he said the GST, to be implemented on April 01, 2015, would not be a big issue for Jasa Kita.

During the AGM, Jasa Kita shareholders had passed all the resolutions, including the payment of a first and final dividend of three sen per share for FY14.

Jasa Kita reported a net profit of RM3.67 million in FY14, down 40% from RM6.1 million a year earlier. Revenue fell to RM58.7 million, from RM62.7 million.

Jasa Kita shares fell one sen or 4% to 21.5 sen at 12.30pm, bringing its market capitalisation to RM96.65 million.