• Overview

FY17 performance was due to increase in average selling price of corrugated boards and cartons boxes by ~18% and 11% YoY as the results of the continuous cost pass-through efforts.  By contrast, paper price increased 19% YoY.

Improved product mix structure with higher premium cartons’ contribution to overall sales also contribute to higher average selling price.

Net sales volume increased YoY by 7.55% to 93,940MT pa (approaching the installed capacity of 100,000 MT pa) with notable demand from E&E, F&B and Furniture industries.

• Overview

FY17 revenue increased 22.2% YoY due to the uptrend in the price of industrial paper and limited allocation from overseas manufacturers. 

There is a constant shortfall in the domestic supply of waste paper which necessitated procurement  for waste paper from overseas.

Completed new corrugating line in Kajang while one of the paper machines was stopped for capacity expansion from Sept 2017. 

• Capital expenses

No major capital expenses forecasted in FY18,

• Capital expenses

Budgeted capital expenditure of RM100 million for 2018 (vs RM110m 2017) which is mainly for capacity expansion, upgrading and improving efficiency

Major expenses include the installation of new corrugating machines in Melaka and Johor Bahru, construction of a new factory in Air Keroh, Melaka with expected corrugating capacity expanded to 270,000 tonnes from 240,000 tonnes in FY17.

• Prospects

Demand for corrugated packaging material is expected to grow more than 4% annually over the next five years

Will avoid dependency on single industry group and continue to diversify its customer and industry group base. 

Aims to position itself as the green partner and to provide value-added services to its customer.

• Prospect

The current downward trend in waste paper price is an added advantage for the Group as it is expected to cushion the impact of higher operating cost such as energy cost, labour cost and a potential hike in interest rate. Overall, the Group is confident that 2018 will be a profitable year.

• Dividend

Declared dividend of 2.50 sen per share (ex-date 28/6/2018).  Total dividend for FY17 5.00 sen per share

• Dividend

Declared dividend of 3.50 sen per share (ex-date 27/6/2018).  Total dividend for FY17 3.50 sen per share