Wednesday, July 30, 2014


Liew controls 32.2% of Main Market-listed Jadi.

In the last few years prior to 2014, the company has been busy focusing on growing its business at the expense of a ballooning capex. It has spent at least RM100mil over the past four to five years and still has to make depreciation charge-outs.

Net profit margins have also been squeezed to below 3% from the previous double-digits.

Nothwistanding its high capex was mainly internally-generated, was used for investments in “several projects”, which he hopes will eventually bear fruit and lift the company to a new phase of growth.

A M&A strategy is planned for Jadi and it is speaking with several “strategic” investors.

It is also studying new areas of printing, including for commercial packaging.

For the financial year ended Dec 31, 2013, the company made a net profit of RM2.2mil on a revenue of RM75.2mil. In its most recent quarter ended March 31, it registered a net profit of RM170,000 on revenue of RM17.8mil.

The company is the only toner manufacturer in Malaysia and the largest in Asia-Pacific, with a production capacity of about 8,000 tonnes a year. It has have no competitor in Malaysia; its competitors are mainly from China and Taiwan.

In the global after-market, it has about 2% market share.

Almost all of Jadi’s toners are exported, with only about 2% of the sales being local business.

Asia-Pacific is its biggest market at the moment, with South America and Eastern Europe “getting to be important”.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.