PETALING JAYA: PMB Technology Bhd aims to double its overseas revenue contribution to between 40% and 50% for this year, by ramping up exports amid a weak ringgit to help offset the soft domestic demand.

The aluminium products manufacturer saw its net profit fall 12% to RM6.6 million for the financial year ended Dec 31, 2014 (FY14), from RM7.56 million for FY13, despite a 17% increase in revenue to RM328.57 million from RM281.88 million.

Its chief executive officer Koon Poh Ming said the cheaper ringgit provides opportunities for the group to boost export sales.

“From this year onwards, we are going to focus on the overseas market. In Malaysia, we feel that due to the [implementation of the] goods and services tax (GST), there will be some consolidation in the market, especially in the property sector," he told reporters after the group's annual general meeting yesterday.

“So, the overseas market will give us better margins in terms of the currency exchange. To increase it (overseas revenue contribution) by 20% is not a problem because we already have sufficient manpower [to cope with the increasing demand],” said Koon.

According to Reuters, the ringgit was up 1.2% at 3.71 against the US dollar yesterday, recovering slightly from 3.77 on June 8, which was its lowest level since February 2006. It slumped to 3.80 during the 1998 Asian financial crisis.

Meanwhile, PMB Technology is cautious about the prospects for the local market in light of the sharp decline in  global crude oil prices and the uncertainty surrounding the implementation of the GST.

PMB Technology (fundamental: 0.7; valuation: 2) shares rose 1.04% to close at 97 sen yesterday, with a market capitalisation of RM74.38 million.

This article first appeared in The Edge Financial Daily, on June 19, 2015.