Business

Thursday June 4, 2009

GUH exploring new ventures to boost income

By DAVID TAN


GEORGE TOWN: GUH Holdings Bhd is exploring new ventures to broaden its income base, supported by strong cash reserves of over RM90mil.

GUH managing director Datuk Kenneth H’ng Bak Tee told StarBiz after an AGM that the businesses being studied included the production of high-end printed circuit boards (PCBs) for audio-video, telecommunications and automotive industries.

“Besides PCBs, we are also looking into investing in water or power concessions outside the country that have the potential to generate consistent income for the group,’’ he said.

“Another business that we are considering is the production or provision of healthcare products and services.

“We will also speed up our acquisitions of oil palm estates this year,” H’ng said.

On the group’s existing PCB business, H’ng said its operations in Suzhou, China were doing remarkably well.

“We are allocating RM3.2mil to expand the operations in Suzhou, which is currently almost fully utilised.

“We will add more production lines to increase work shifts and new cost-savings technology at the Suzhou facility.

“We expect operations there to contribute more significantly to the group’s pre-tax profit and revenue for the 2009 fiscal year ending this Dec 31.

“Normally, the Suzhou operations contribute about 50% of the revenue and profit,” he said.

The Suzhou business had gained from recurring orders from multinational corporations involved in the production of LCD television panels, H’ng said.

GUH produces for its customers in China one to six layers of multi-layered PCBs.

For its fiscal first quarter ended March 2009, the group achieved a pre-tax profit of RM4.7mil on revenue of RM53.1mil. “The Suzhou operations contributed 70% to group pre-tax profit. In the corresponding quarter of 2008, those operations generated only RM700,000 in pre-tax profit,’’ he said.

“The results show the demand for PCBs in China is growing,” H’ng said.


GUH : [Stock Watch] [News]

  • E-mail this story
  • Print this story