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发表于 17-5-2008 01:24 PM
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Jadi Imaging sees good demand but lower margins
By Zuraimi Abdullah Published: 2008/05/17
EXPORT-ORIENTED Jadi Imaging Holdings Bhd expects healthy growth in demand for its black and colour toners, but warns that soaring raw material costs and foreign exchange fluctuations will hurt margins.
Demand for Jadi's toners grew 22 per cent last year, but a weakened US dollar and a strong Japanese yen cut revenue growth to about four per cent, said its executive chairman Liew Kim Siong.
"About 95 per cent of our revenue is derived from export, which is quoted in the US dollar," Liew told reporters after the company's annual general meeting (AGM) in Shah Alam yesterday.
The appreciating yen negatively affects its production cost as the main raw material, resin, is imported from Japan.
Jadi, the country's sole toner manufacturer and Southeast Asia's biggest, made a net profit of RM10.68 million on revenue of RM56.67 million in the fiscal year ended December 31 2007.
Liew said the company - listed on Bursa Malaysia's main board - will choose Singapore or Hong Kong, rather than China or Taiwan, if it considers cross listing.
The company will continue to grow organically through expansion plans, he said. It currently has a plant in China and plans to set up a second production line there next year.
Jadi recently started operating its fifth and sixth production lines of its factory in Shah Alam. The latter line is exclusively for colour toner production.
Asia is the company's biggest market with over 60 per cent contribution to its total revenue.
But the company plans to boost sales in Europe and the US. The latter now accounts for only one per cent of total revenue.
"We hope to open a sales and marketing office in the US and appoint a master distributor in Europe this year," Liew said.
Jadi is also considering mergers and acqusitions in line with its goal to turn itself into a total imaging solution provider over the long term.
At the AGM, shareholders approved the proposal to buy back Jadi's shares. Company directors said this was to stabilise its share price, which is undervalued at present.
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