expansion plans

 
 

China’s factory heartland braces for Trump’s big tariff hit

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BEIJING: In China’s manufacturing heartland around the Pearl River Delta, Donald Trump’s 10% tariffs are causing little concern. The 25% duties that loom next year are another matter. Ben Yang, a furniture maker producing contemporary designs out of his facility in Dongguan – about 30 miles from Hong Kong – says that if those higher charges materialise from January as planned, the US share of exports from his Sunrise Furniture Co could plunge from 90% to less than a third. “Our major rival is Vietnam and 10% tariffs aren’t enoughRead More


Indonesia’s moratorium to be big blow for late entrants to plantations

KUCHING: Indonesia’s moratorium on plantation permits will be negative to those who are late entrants in the country’s plantation industry. According to a Reuters article, Indonesia’s government issued a presidential instruction to place a moratorium on new permits for palm plantations for three years, as part of efforts to protect forests, a presidential official said […]


Asian markets enjoy healthy rally after China-US talks offer

HONG KONG, Sept 13 — Hong Kong led a rally in most Asian markets today after the US reached out to China in a fresh bid to avert a trade war, providing some much-needed respite to weary investors. News that Treasury Secretary Steven…


Record US job openings, quits rate boost wage growth outlook

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WASHINGTON, Sept 12 — US job openings surged to a record high in July and more Americans voluntarily quit their jobs, pointing to sustained labour market strength and confidence that could soon spur faster wage growth. The Labour Department's…


Plastic, packaging sector’s capacity expansion plans on track

KUCHING: The plastic and packaging sector’s capacity expansion plans are on track, analysts observe, but also note that their main concern is margin compression. The research arm of Kenanga Investment Bank Bhd (Kenanga Research) expected capacity expansion across the sector to drive top-line growth in the longer-run. It said that this would be “assisted by […]


Analysts retain GDEX’s FY18 and FY19 earnings forecasts

KUCHING: GD Express Carrier Bhd’s (GDEX) financial year 2018 (FY18) and FY19 earnings have been left unchanged by analysts, despite the expected increase in average sorting capacity. According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), in spite of the expected increase in average sorting capacity, it opined earnings upside to […]


Geely sees minimal impact from US-China trade row

BEIJING: China’s Geely Automobile Holdings Ltd shrugged off intensifying China-US trade frictions on Wednesday, saying that it was likely to beat its 2018 sales targets and would push ahead with global expansion plans. The firm, currently ranked the best-selling Chinese automaker globally by sales, was once known for cheaper, copycat designs but has assumed upmarket […]


Starbucks boycott? Nike shutdown? China holds trade war leverage

BEIJING, Aug 21 — America’s corporate bosses could be excused if they don’t agree with President Donald Trump’s boasts that a trade war is “easy to win.” They can just reflect on the levers of pain China pulled against South Korean-owned…


Is Boustead Plantations’ RM397m land buy worth it?

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AT RM397 million, Boustead Plantations Bhd’s proposed land acquisition in Sabah looks likely to add some short-term strain to the planter’s cash flow when completed. While the purchase will increase its existing planted area by about 6% — and grow its total land bank by about 5% — the oil palm trees on the acquired land are old at an average age of 18.7 years. So the odds are the acquisition will add to Boustead Plantations’ finance costs without a corresponding boost to income given the low-yield trees Furthermore, withRead More


Kossan’s Q2 earnings fall 2.48%

PETALING JAYA: Kossan Rubber Industries Bhd’s net profit for the second quarter ended June 30, 2018 fell 2.48% to RM44.70 million from RM45.84 million a year ago due to lower performance of its gloves division.

Revenue for the quarter rose 1.28% to RM496.79 million from RM490.51 million a year ago.

In a filing with Bursa Malaysia, the group said its gloves division’s revenue eased 2.36% to RM432.36 million during the quarter from RM442.83 million a year ago, with pre-tax profit easing by 11.94% to RM46.34 million from RM52.62 million a year ago.

The lower performance was attributed to the time-lag in cost-pass-through arising from the increase in raw material costs, natural gas prices and the less-than-favourable exchange rate.

However, demand for glove products continued to be strong with stable average selling prices and higher volume sold compared with a year ago.

Meanwhile, the technical rubber product (TRP) division’s revenue rose 32.07% to RM44.54 million from RM33.72 million a year ago while pre-tax profit soared 190.44% to RM8.11 million from RM2.79 million a year ago due to increased sales deliveries and sales of higher margin products.

The cleanroom division recorded revenue and pre-tax profit of RM19.3 million and RM1.13 million respectively compared with RM13.12 million and RM660,000 respectively a year ago.

For the six months ended June 30, 2018, net profit fell 3.33% to RM89.99 million from RM93.09 million a year ago while revenue fell marginally to RM980.97 million from RM990.49 million a year ago, due to lower contributions from the gloves division.

Moving forward, the group’s total installed capacity is expected to reach 32 billion pieces of gloves per year by financial year ending Dec 31, 2019, with the completion of three new plants.

It also plans to set up an integrated glove manufacturing facility in Bidor, Perak, where it has acquired 824 acres for RM82.4 million earlier in March.

The group is optimistic of the current financial year’s performance based on its expansion plans, continued strong demand for its gloves, ongoing transformation programme, improvements in operating efficiency and new plants coming onstream.

Kossan’s share price fell 0.45% or 2 sen to close at RM4.43 on Friday with 1.32 million shares traded.