Thursday 28 Mar 2024
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Asia Poly Holdings Bhd (-ve)

SHARES of ACE market-listed Asia Poly (Fundamental: 0.55/3, Valuation: 0.5/3) have been actively traded since the emergence of new major shareholder Yeo Boon Leong in April 2015. This came after the Lim family disposed of their entire 27.6% stake to Yeo.

Yeo, whose business expertise is in the hardware industries, subsequently became the company’s executive chairman. Following the reshuffle of the board, it is introducing higher-margin eco-friendly products and optimising its manufacturing process to reduce waste and save costs. 

Based in Klang, Asia Poly manufactures cast acrylic sheets, which are used for back-lit lighting applications such as signboards and lighting displays. Net margins have been razor-thin, ranging from 0.9-1.8% for FYMar2012-FY2014, due mainly to fierce competition from other low-cost countries. 

For FY2015, net profit increased 4.1% to RM0.7 million on the back of a 14.3% revenue growth to RM78.4 million. It has proposed a final dividend of 0.5 sen.

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This article first appeared in The Edge Financial Daily, on June 29, 2015.

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