Business

Saturday June 27, 2009

Supportive plans to buy foreign distributor

By DAVID TAN


GEORGE TOWN: Supportive International Holdings Bhd plans to acquire a foreign supply chain-cum-distribution company this year.

The acquisition of such a company was in line with the group’s plans to produce its own brand of audio-visual consumer electronics products soon, executive chairman Lee Kuang Shing told StarBizWeek.

An artist's impression of terraced houses at Supportive's Aman Bayu project

“We plan to produce consumer electronic items such as DVD players and LCD panels.

“The company we are targeting will help us market and distribute our own brand of consumer electronic products to European countries,” he said after Supportive AGM.

Lee said he expected the economy to recover by the year-end. “The forthcoming 2012 Olympics in London should spur consumer spending,” he said.

On the group’s original equipment manufacturing business for Panasonic and JVC, Lee said it did not experience a slowdown.

“In fact the business generated stronger profits as raw material prices plunged,” he said.

For the first quarter ended April 30, the group posted about RM3.8mil pre-tax profit on revenue of RM15mil, compared with RM1.2mil and RM22mil respectively a year ago.

Supportive makes home equipment theatre systems for Panasonic and JVC.

“Our competitive edge is that we have the capability to produce the components and plastic injection moulds, and source competitively-priced raw materials for our customers,” Lee said.

On the group’s property development business, Lee said its RM360mil Aman Bayu project in Butterworth would contribute about 30% to revenue this year.

“We have sold half of the 100 three-storey terraced houses priced about RM350,000, which were launched early this year.

“The second and third phases, comprising 250 semi-detached houses and bungalows, will be launched next year,” he said.

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