Monday, June 16, 2014

SKPRes - Owner Acquired More Shares

SKPRES is an EMS provider. Its new plant will increase its production capacity by 75% in the pipeline.

Skeptics pointed to its 24% drop in the its net profit in FY2014 ended March 31which was attributed to lower orders from its biggest customer, premium household appliance marker Dyson Inc.

Its CEO said SKPREs is moving on from a temporary blip in its growth and cities the year on year jump of 17% in net profit and 39.92% in revenue in 4QFY2013 as proof that the company has bounced back.

Its relationship with Dyson grew which turned it into a fully integrated EMS provider. Now (June 2014) its involvement with Dyson extends to R&D, manufacturing Dyson’s products in house and finally shipping them.

The company’s other clients include Sony, HP and Pioner.

Dyson is the company biggest contributor to the its revenue account for 50% to 55% of it. However market observers have criticized SKPRes dependence on Dyson.

SKPRes is looking to grow its clientele and is talking to more electronics players to grow its product base.

Its new rm34 million plant could be ready by the final quarter of 2014.

SKPRes had not borrowings as at March 31 2014 while its cash stood at rm93.13 million.

SKPRes had secured a major contract from Dyson to produce vacuum cleaners and a new product line from the British brand.

Datuk Gan Kin Huat had purchased 52 million SKP Res shares or a 5.78% stake in the company. Kin Huat is the executive chairman and MD of SKP Res. In 2014 alone, he had acquired and raised his holding by 7.41% to 17.45%. He also holds an indirect stake of 49.51% stake, making him the largest shareholder the company.

It a dividend policy of 50% of annual net profit.

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