CHINWEL (5007) - Chin Well identifies key drivers for growth
Monday, 13 April 2015
Executive director Tsai Chia Ling(inset) told StarBiz the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector. (A file picture shows Chin Well’s workers at the production plant for the automated packaging of fasteners.)
Executive director Tsai Chia Ling(inset) told StarBiz the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector. (A file picture shows Chin Well’s workers at the production plant for the automated packaging of fasteners.)
GEORGE TOWN: Chin Well Holdings Bhd expects its do-it-yourself (DIY) fasteners, contribution from domestic market and high security fencing products to be the key drivers of growth.
Executive director Tsai Chia Ling said the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector.
“The demand for fences in the local market is expected to increase, driven by the implementation of various government projects in the construction and landscaping sectors,” Tsai said.
The domestic contribution to the group’s revenue for the 2015 fiscal year ending June is expected to drop, as local wholesalers of hardware products have held back buying due to the uncertainties concerning the goods and services tax.
“Now that the uncertainties are being cleared, there are new orders coming in to restock their inventories,” she told StarBiz in an interview.
Tsai said the group expected to see a single-digit percentage improvement in Vietnam’s contribution for the 2015 fiscal year.
“We can also expect the Vietnam’s DIY to achieve a single-digit percentage growth for the 2016 fiscal year.
“Currently, the Vietnam operations contribute about 40% to the group’s revenue and make up half of the bottom-line.
“The Vietnam operations produced 3,800 tonnes of fasteners per month,” she pointed out.
On the 2015 fiscal year, Tsai said it was expected to be flat compared with 2014.
“This is attributed to the weakening of the euro, which has dropped by 20% since last year.
“Although the sales from Europe, which contribute 60% of the group’s revenue, has increased, our turnover has declined,” Tsai said.
Tsai said the group could expect the demand from eastern Europe for fasteners to grow this year.
“The orders from the automotive sector in Europe is growing steadily.
“Our fasteners are used in the seating and doors of vehicles,” she said.
According to the latest Transparency Market Research report released in December 2014, the industrial fastener market is expected to develop at a moderate pace and reach a net worth of US$94.65bil (RM342bil) from US$65.50bil in 2011, growing at a compounded annual growth rate (CAGR) of 5.4% during the period 2012 to 2018.
“The global industrial fasteners market is gaining momentum on the account of the rise in construction and maintenance activities across the globe.
“Increase in the demand for automobiles, specifically in emerging economies such as Brazil, China, and India is a significant factor contributing to the growth of the global industrial fasteners market.
“The construction application segment of the global industrial fasteners market is expected to expand at a 9% CAGR during the period of 2012 to 2018,” the report says.
According to the report, Asia-Pacific held the highest demand for industrial fasteners, occupying 40% of the overall industrial fasteners market in 2011.
“The demand from the European industrial fastener market followed the Asia-Pacific market.
“By 2018, the market for industrial fasteners in Asia-Pacific will occupy around 45% of the total market share.
http://www.thestar.com.my
Monday, 13 April 2015
Executive director Tsai Chia Ling(inset) told StarBiz the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector. (A file picture shows Chin Well’s workers at the production plant for the automated packaging of fasteners.)
Executive director Tsai Chia Ling(inset) told StarBiz the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector. (A file picture shows Chin Well’s workers at the production plant for the automated packaging of fasteners.)
GEORGE TOWN: Chin Well Holdings Bhd expects its do-it-yourself (DIY) fasteners, contribution from domestic market and high security fencing products to be the key drivers of growth.
Executive director Tsai Chia Ling said the domestic contribution for the 2016 fiscal year starting July should improve due to new construction and landscaping jobs from the government sector.
“The demand for fences in the local market is expected to increase, driven by the implementation of various government projects in the construction and landscaping sectors,” Tsai said.
The domestic contribution to the group’s revenue for the 2015 fiscal year ending June is expected to drop, as local wholesalers of hardware products have held back buying due to the uncertainties concerning the goods and services tax.
“Now that the uncertainties are being cleared, there are new orders coming in to restock their inventories,” she told StarBiz in an interview.
Tsai said the group expected to see a single-digit percentage improvement in Vietnam’s contribution for the 2015 fiscal year.
“We can also expect the Vietnam’s DIY to achieve a single-digit percentage growth for the 2016 fiscal year.
“Currently, the Vietnam operations contribute about 40% to the group’s revenue and make up half of the bottom-line.
“The Vietnam operations produced 3,800 tonnes of fasteners per month,” she pointed out.
On the 2015 fiscal year, Tsai said it was expected to be flat compared with 2014.
“This is attributed to the weakening of the euro, which has dropped by 20% since last year.
“Although the sales from Europe, which contribute 60% of the group’s revenue, has increased, our turnover has declined,” Tsai said.
Tsai said the group could expect the demand from eastern Europe for fasteners to grow this year.
“The orders from the automotive sector in Europe is growing steadily.
“Our fasteners are used in the seating and doors of vehicles,” she said.
According to the latest Transparency Market Research report released in December 2014, the industrial fastener market is expected to develop at a moderate pace and reach a net worth of US$94.65bil (RM342bil) from US$65.50bil in 2011, growing at a compounded annual growth rate (CAGR) of 5.4% during the period 2012 to 2018.
“The global industrial fasteners market is gaining momentum on the account of the rise in construction and maintenance activities across the globe.
“Increase in the demand for automobiles, specifically in emerging economies such as Brazil, China, and India is a significant factor contributing to the growth of the global industrial fasteners market.
“The construction application segment of the global industrial fasteners market is expected to expand at a 9% CAGR during the period of 2012 to 2018,” the report says.
According to the report, Asia-Pacific held the highest demand for industrial fasteners, occupying 40% of the overall industrial fasteners market in 2011.
“The demand from the European industrial fastener market followed the Asia-Pacific market.
“By 2018, the market for industrial fasteners in Asia-Pacific will occupy around 45% of the total market share.
http://www.thestar.com.my
