May 24, 2018 16:41 pm +08
KUALA LUMPUR (May 25): Kumpulan Perangsang Selangor Bhd (KPS) says the business expansion of its subsidiary Century Bond Bhd is expected to contribute to higher earnings for the group in the financial year 2018 (FY18).
Its acquisition of electronic manufacturing services player CPI (Penang) Sdn Bhd, which was completed at the end of first quarter of FY18 (1QFY18), will also be immediately value-accretive to the group's consolidated FY18 revenue, the group said in a statement today.
KPS said CPI's global clientele spans across the automotive, healthcare, telecommunications, as well as industrial and consumer industries. "50% of CPI’s annual revenue is derived from exports, while local sales are primarily to Malaysia-based subsidiaries of multinational groups," KPS said.
As for Century Bond, the group is seeking to further enlarge the subsidiary's footprint in the non-cement sector in Malaysia, the statement said.
"The recently-signed joint venture between Century Bond and China-based Honda Printing Holdings Limited (Honda Printing) to produce offset carton boxes, enables Century Bond to extend its value-chain further into offset carton boxes, where the outer layer of the box is laminated by a printed sheet to provide finer and more vibrant printing," KPS said.
KPS chief executive officer Ahmad Fariz Hassan said the group is entering a new era of earnings diversity and its reach has extended to new frontiers globally, where revenue from overseas will make up approximately one-third of the group’s revenue.
“Furthermore, these companies have proven expertise in their respective fields, with capacity to extend their lead and command strong double-digit margins. This bodes well for KPS’ earnings quality and ability to generate increasing returns for shareholders,” Ahmad Fariz added.
KPS said it has also set a new direction for its King Koil licensing business for the US market, by setting its first manufacturing plant in Arizona, Phoenix for direct distribution in the Western region of the US.
It has also formed a strategic partnership with Blue Bell Mattress to manufacture and distribute King Koil products in US' Midwest region.
"The new direction will enable the group to command greater control of the distribution and product quality, and grow market share in King Koil’s home ground in the US," the statement read.
Meanwhile, at KPS annual general meeting yesterday, shareholders approved the final dividend payout of 4.25 sen per share in respect of FY17, which amounts to RM22.8 million or 38.8% of the group’s FY17 net profit attributable to shareholders.
Going forward, KPS said it will continue its steadfast commitment to unlock the full potential of investee companies via its value creation plan.
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