The key financial highlights of the Group’s historical financial information for the FY Under Review are set out below.
Major Customers
The top 5 major customers for FYE 2023 are as follows:
The top 5 customers contribute 95.8% of the company's revenue. The company faces high concentration customer risk as it is dependent on these major customers. However, the management mentioned that there is mutual dependency between the group and its major customers, who are Tier 1 automotive seat and/or interior part manufacturers. The Group depends on them to the extent of the purchase orders received, while they also rely on the Group for the supply of automotive covers.
Major Suppliers
The top 5 major suppliers for FYE 2023 as follows:
The top 5 suppliers account for 72.2% of the purchases. The management mentioned that there are many other available local and foreign suppliers of automotive cover materials, parts, and accessories. Thus, the automotive seat and interior part industry is not dependent on these major suppliers or any individual country for the supply of such supplies.
According to Providence Strategic's research,the automotive cover and automotive seat industries in Malaysia grew by 9.6% and 4.3% between 2018 and 2019, respectively. Both of the automotive seat and cover industries in Malaysia were adversely impacted by the COVID-19 pandemic in 2020, resulting in a fall of 23.0% and 37.5% between 2019 and 2020. Nevertheless, the automotive cover and seat industries in Malaysia improved in 2021, registering a growth of 6.8% and 33.3% between 2020 and 2021, respectively. The automotive cover and seat industry sizes in Malaysia have grown to RM420.3 million and RM3.1 billion in 2022, respectively. In 2023, the automotive cover and seat industry sizes in Malaysia further increased to RM 503.5 million and RM3.3 billion, respectively. Moving forward, the automotive cover and seat industries in Malaysia are forecast to grow at CAGRs of 8.0% and 6.7% between 2024 and 2026, respectively, in light of the following demand drivers:
As a key industry player in the automotive cover industry in Malaysia, Feytech Group stands to benefit from the positive outlook of the automotive cover industry in Malaysia. Feytech Group also stands to benefit from the growing automotive seat industry in Malaysia.
Source:Providence Strategic
The Group’s business strategies and future plans are as follows:
Opportunities
Risk
Click here to refer the IPO - Feytech Holdings Berhad (Part 1)
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