Category Archives: News Room

Daibochi gets the nod for Myanmar joint venture [PRESS RELEASE]

  • Myanmar operations to post significant contribution to Group effective 3Q17
  • Investing USD5.5 million CAPEX to enhance plant production capacity and efficiency

Kuala Lumpur, Malaysia, 3 May 2017 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) secured regulatory approval from the Myanmar Investment Commission (MIC) for its joint venture (JV) company Daibochi Packaging (Myanmar) Company Limited (DPM) to commence operations, charting a new milestone in its regional expansion in Southeast Asia’s burgeoning consumer packaging market.

Established in February 2017, DPM is a JV between Daibochi’s wholly-owned subsidiary Daibochi Flexibles Sdn Bhd and flexible packaging manufacturer Myanmar Smart Pack Industrial Company Limited (MSP) to operate a flexible consumer packaging production facility in Yangon, Myanmar.

Mr. Thomas Lim (树坤), Managing Director, Daibochi Plastic and Packaging Industry Berhad said:

“With the approval from MIC, DPM will proceed with the completion of the JV agreement and we target to officially commence operations in a month’s time. DPM is set to contribute significantly to the Group’s financial performance effective from the third quarter of 2017 (3Q17).

More importantly, we are ready to commence exports from our Myanmar operations to ASEAN countries in 3Q17, complementing the Malaysian plant in covering a wider customer base. We will also expand sales within Myanmar itself, to ride on its growing population and increasingly-developing economy.”

Read the full press release here.

[The Star] The right MBA programme to success

 

(From left in black) SEGi College Penang vice-principal Dr Tie Hui Hui, principal Cheah Teong Keat and Business & Accountancy School head L. Prakash posing for a photo with their visiting guests from University of Sunderland (seated from left) Tuesday Sampson, Julie Curtis and Angela Mason.

(From left in black) SEGi College Penang vice-principal Dr Tie Hui Hui, principal Cheah Teong Keat and Business & Accountancy School head L. Prakash posing for a photo with their visiting guests from University of Sunderland (seated from left) Tuesday Sampson, Julie Curtis and Angela Mason.

THE benefits of pursuing a Masters in Business Administration (MBA) may be great but many working adults who wish to climb the corporate ladder will still have to give the matter some serious thought.

The market already has many MBA graduates. Also, pursuing an MBA requires much time, effort and financial support. Thus, it is important to get the right MBA.

With so many choices available, one can be easily overwhelmed.

In recognising the importance of providing a globally recognised and affordable qualification, SEGi College Penang in partnership with the University of Sunderland from Britain is offering the Sunderland MBA programme.

The programme is designed to accelerate work promotion and adequately prepare graduates for new opportunities in any organisation.

Students have the opportunity to visit industries and learn from Sunderland’s approved facilitators who are made up of great business minds.

One of the greatest advantages of pursuing an accredited MBA is the opportunity for networking.

By having facilitators and guest speakers who are key personalities in their respective fields, students are assured of immediate access to a network of contacts.

Professional networking can also be formed in the classroom amongst fellow classmates.

Forming professional and personal bonds with these people may prove invaluable in the future.

Understanding that an MBA is part of an onward journey, SEGi also offers extensive career support via its Career Placement Office to help those keen to invest in themselves and achieve their personal goals.

For more information, contact 04-2633888.

 

[The Star] Attractive deals to help buyers

Spacious double-storey linked semi-detached homes of Pearl 28.

Spacious double-storey linked semi-detached homes of Pearl 28.

TAMBUN Indah Land Berhad has made its mark in thriving southern Seberang Prai in Penang with its flagship township of Pearl City.

Designed to foster communal living, the 1,140-acre integrated undertaking in Simpang Ampat is optimally situated near the Bukit Tambun North-South Highway interchange and the second Penang Bridge.

The latest offering is Pearl 28, a low-density enclave of freehold linked double-storey semi-detached homes with generous living spaces of 2,846sq ft.

Comprising five bedrooms and five bathrooms, the units are priced from RM680,000 and targeted for completion in mid-2017.

Those seeking affordable landed homes will find Pearl Tropika an ideal choice with its double- storey terrace units priced from RM438,000.

The gated freehold Raintree Park provides a relaxing way of life in a safe environment. The double- storey terrace homes here come with a back yard. They are priced from RM468,000.

With OC to be obtained soon, buyers need pay only a RM5,000 downpayment until vacant possession.

Residents get to indulge in a modern lifestyle with recreation facilities including a pool, children’s wading pool and lush landscaping to accord serenity.

The twin 17-storey towers of Avenue Garden comprise of serviced apartments priced from RM268,000 and they come with two free car parking bays.

In becoming a part of the vibrant Pearl City community, buyers get to enjoy huge savings from attractive packages such as low downpayment, cash back, Ang Pow Dip and ZEC package.

Call the marketing personnel at 04-5010088 or drop by to view the show houses that are open daily.

Crossing over to the island in Jelutong, the freehold commercial suites of Straits Garden are fully furnished with stylish fittings and electrical appliances. Selling from RM438,000, only limited units are available.

For details, call 04-5010088/04-3240088 or 012-4775380 (Rebecca), 012-6945380 (GK), 012-5485380 (Ween) or log on to www.pearlcity.com.my orwww.tambunindah.com.

[StarEdu] Moulding quality grads

SEGi University celebrated its 16th Convocation Ceremony last month with a total of 1,533 students graduating.

SEGi University celebrated its 16th Convocation Ceremony last month with a total of 1,533 students graduating.

SEGi University & Colleges has been producing first class graduates for 40 years.

In 2015 and 2016, more than 300 graduates a year graduated with first class honours.

SEGi strives to ensure that students receive the best education possible and to make first class graduates possible.

SEGi which was first established in 1977 as Systematic College, has since grown to meet the increasing demand for high academic and professional qualifications.

Today, SEGi has five major campuses in the Klang Valley, Penang and Sarawak with over 25,000 students making it one of the most accessible higher institution in Malaysia.

With over 200 wide-ranging quality programmes to choose from it comes as no surprise that SEGi has over 120,000 alumni members worldwide.

Students have many first-class programmes to choose from, ranging from Medicine, Dentistry, Pharmacy, Optometry, Engineering, Business, Creative Arts, Communication Studies, Early Childhood Education and Computing & IT.

With 40 years of experience in the education industry, it is no wonder that SEGi has garnered a string of accolades.

The most recent accolade which was awarded to SEGi University was the three stars overall it achieved in the QS (Quacquarelli Symonds) Stars audit. It was awarded five stars in the categories of teaching, facilities, social responsibility and inclusiveness in the audit.

QS Stars is a rating system which allows students to better understand an institution’s qualities, looking at everything from the employability of graduates, to sports facilities and community engagement.

The QS Stars audit assesses an institution against over 50 different indicators, and awards universities between one and five stars over eight wider fields, as well as an overall rating.

SEGi has also garnered a string of accolades. In 2016, SEGi gained the Bronze trophy in the Education & Learning category at the Putra Brand Awards 2016, the Gold trophy at The Reader’s Digest Trusted Brand Award 2015 in the Private Universities/Colleges category and was also voted among the top five for GTI Malaysia’s Courses Now Students Choice Awards.

SEGi was awarded six stars (“Excellent”) under the Malaysian Quality Evaluation System (MyQuest) 2014/2015. SEGi achieved Tier Five or excellent under the Rating System for the Malaysian Higher Education (Setara) 2013.

Visit the nearest SEGi campus today, to have your chance in being a first class graduate and be on the right path to a successful career.

For more information, call SEGi University (03-6145 1777 or 1800-88-7344), SEGi College Subang Jaya (03-86001888 or 1800-888-622), SEGi College Kuala Lumpur (03-20702078 or 1800-888-028), SEGi College Penang (04-2633888), SEGi College Sarawak (1300-88-7344), e-mail askme@segi.edu.my or log on towww.segi.edu.my.

[Malaysian Reserve] Daibochi Posted RM97m Revenue In 2Q16

Daibochi Plastic and Packaging Industry Bhd said strong growth from its exports helped it posted a revenue of RM97.03 million in the second-quarter ended June 30, 2016 (2Q16), versus RM89.7 million a year ago for the same period.

In a filing to Bursa Malaysia yesterday, the packaging product maker noted export sales grew 20% as demand came from Asean region and Australia.

Net profit however declined to RM6.08 million or 2.23 sen a share in 2Q16 compared to RM7.19 million or 2.64 sen a share a year ago, due to higher operating costs, particularly due to the effects of the revised wage policy implemented by the group since Jan 1, 2016.

The lower profitability was also due to higher operating expenses such as repairs and maintenance and air freight for a new product launch, product mix and increased wastage. The company declared a 1.33 sen second interim single-tier dividend.

[The Star] Reaching for the stars

SEGi has five campuses in the Klang Valley, Penang and Sarawak with (from left) SEGi University Kota Damansara, SEGi College Subang Jaya, SEGi College Kuala Lumpur, SEGi College Penang and SEGi College Sarawak.

SEGi has five campuses in the Klang Valley, Penang and Sarawak with (from left) SEGi University Kota Damansara, SEGi College Subang Jaya, SEGi College Kuala Lumpur, SEGi College Penang and SEGi College Sarawak.

SEGi University was recently awarded five stars in the categories of teaching, facilities, social responsibility and inclusiveness based on the 2015 data compilation in the QS (Quacquarelli Symonds) Stars audit. It achieved three stars overall.

QS Stars is a rating system which allows students to better understand an institution’s qualities, looking at everything from the employability of graduates, to sports facilities and community engagement.

The QS Stars audit assesses an institution against over 50 different indicators, and awards universities between one and five stars over eight wider fields, as well as an overall rating.

Since its beginnings as Systematic College in 1977, SEGi University & Colleges has given out over RM100mil worth of scholarships to deserving students throughout this 40 years of caring and sharing and will continue to do so.

For 40 years, SEGi has assisted many students to fulfil their dream careers through the High Achiever’s Scholarship, SEGi’s most sought after scholarship.

Through the High Achiever’s Scholarship, students may obtain up to 100% tuition fee waivers and may apply using their SPM/UEC forecast results.

In conjunction with SEGi’s 40th Anniversary, SEGi will be offering unlimited seats throughout 2017. Terms and conditions apply.

SEGi remains dedicated in its quest to nurture and groom tomorrow’s leaders by offering one of the widest ranges of programmes including Medicine, Dentistry, Pharmacy, Optometry, Engineering, Business, Creative Arts, Communication Studies, Early Childhood Education and Computing & IT.

SEGi is also one of the largest private higher education institutions with over 25,000 students. With five campuses in the Klang Valley, Penang and Sarawak, it is one of the most accessible higher education institutions in the country.

Not one to rest on its laurels, SEGi wants to make education accessible to all and will continue to raise the bar for education excellence in Malaysia.

Visit the nearest SEGi campus to apply for the High Achiever’s Scholarship and be on the path to a successful career. It is a great opportunity to check out the campus facilities, academicians and also other programmes on offer.

[StarEdu] Reaching for the stars

SEGi has five campuses in the Klang Valley, Penang and Sarawak with (from left) SEGi University Kota Damansara, SEGi College Subang Jaya, SEGi College Kuala Lumpur, SEGi College Penang and SEGi College Sarawak.

SEGi has five campuses in the Klang Valley, Penang and Sarawak with (from left) SEGi University Kota Damansara, SEGi College Subang Jaya, SEGi College Kuala Lumpur, SEGi College Penang and SEGi College Sarawak.

SEGi University was recently awarded five stars in the categories of teaching, facilities, social responsibility and inclusiveness based on the 2015 data compilation in the QS (Quacquarelli Symonds) Stars audit. It achieved three stars overall.

QS Stars is a rating system which allows students to better understand an institution’s qualities, looking at everything from the employability of graduates, to sports facilities and community engagement.

The QS Stars audit assesses an institution against over 50 different indicators, and awards universities between one and five stars over eight wider fields, as well as an overall rating.

Since its beginnings as Systematic College in 1977, SEGi University & Colleges has given out over RM100mil worth of scholarships to deserving students throughout this 40 years of caring and sharing and will continue to do so.

For 40 years, SEGi has assisted many students to fulfil their dream careers through the High Achiever’s Scholarship, SEGi’s most sought after scholarship.

Through the High Achiever’s Scholarship, students may obtain up to 100% tuition fee waivers and may apply using their SPM/UEC forecast results.

In conjunction with SEGi’s 40th Anniversary, SEGi will be offering unlimited seats throughout 2017. Terms and conditions apply.

SEGi remains dedicated in its quest to nurture and groom tomorrow’s leaders by offering one of the widest ranges of programmes including Medicine, Dentistry, Pharmacy, Optometry, Engineering, Business, Creative Arts, Communication Studies, Early Childhood Education and Computing & IT.

SEGi is also one of the largest private higher education institutions with over 25,000 students. With five campuses in the Klang Valley, Penang and Sarawak, it is one of the most accessible higher education institutions in the country.

Not one to rest on its laurels, SEGi wants to make education accessible to all and will continue to raise the bar for education excellence in Malaysia.

Visit the nearest SEGi campus to apply for the High Achiever’s Scholarship and be on the path to a successful career. It is a great opportunity to check out the campus facilities, academicians and also other programmes on offer.

Daibochi bullish on Myanmar venture

By P. Aruna

Lim says they are convinced, after several visits to the country, that Myanmar holds tremendous potential for Daibochi to grow its business in the long term.

Lim says they are convinced, after several visits to the country, that Myanmar holds tremendous potential for Daibochi to grow its business in the long term.

MD says the country holds tremendous potential in the long term

MYANMAR’s growing population, rising income levels and low cost business environment are among the key attractions that led to Daibochi Plastic and PackagingIndustry Bhd’s decision to expand into the country.

The flexible packaging manufacturer says the time is ripe for it to expand its operations and set up its first overseas manufacturing facility in Myanmar.

Daibochi managing director Thomas Lim says they are convinced, after several visits to the country, that Myanmar holds tremendous potential for Daibochi to grow its business in the long term.

“The more affluent the citizens, the more flexible packaging they tend to consume in line with changing lifestyles.

“One example of this is in the detergent usage, where users preferences evolve from using soap bars, which is the most economical option, to soap powder which are packed in bags of various sizes,” he tells StarBizWeek.

On Monday, Daibochi entered into a Memorandum of Agreement (MoA) with Myanmar Smart Pack Industrial Company Ltd (MSP) to set up the manufacturing facility under a joint venture (JV) company called Daibochi Packaging (Myanmar) Co Ltd (DPM) to tap into the flourishing consumer packaging market there.

It will be investing US$6.8mil (RM29mil) for a a 60% stake in the JV company, while MSP will hold the remaining 40% stake after injecting its entire assets into DPM.

After Daibochi, telecommunications player OCK Group Bhd also announced its entry to Myanmar last week.

“The timing is right as we believe we have many good flexible packaging products which we can introduce in Myanmar market.

“We believe MSP, with its entrenched position in the country, is a perfect partner for us to take a firm foothold and gain an insiders’ perspective into the market’s dynamics, distribution system and so on,” says Lim.

Daibochi will be submitting an application to the Myanmarese government to set up the JV company and for a tax-exempt status, with the approval process expected to take between three to six months.

Once the approval is granted, the JV company will takeover MSP’s existing business and factory in Yangon.

MSP’s current business is primarily in the home personal care products segment and supplies to the local market in Myanmar, while Daibochi is in flexible packaging for the food and beverage and FMCG sectors.

Daibochi will be injecting an additional capital expenditure of US$5.5mil (RM23.6mil) over the next three years to enhance the production capacity, quality and efficiency of the facility in Myanmar, and says this will be funded via a combination of internally-generated funds and bank borrowings.

The bulk of the funding for the RM5.5mil, he says, will be through the cash flow from the JV company itself, as opposed to fresh funding from Daibochi or MSP.

He says the profit margin in Myanmar was high, mostly due to the low cost.

“We are expecting a very strong cash flow from operations there. “Based on this forecast, we are not expecting any fresh capital injection from either shareholders,” he adds.

Lim says they expect to hit the ground running as it was a brownfield investment, and says the JV will contribute positively to the topline and bottomline of the group within the first year of operations.

“We are expecting DPM to post double digit growth in both top and bottom line,” he says.

Asked when shareholder will reap the benefits of the move, Lim says Daibochi and MSP have agreed that DPM’s earnings in the initial years will be ploughed back into the business to establish a strong base and to expand organically.

He says DPM has established a dividend policy of 50% of relevant year earnings to be paid from the third year onwards.

“This will benefit shareholders of Daibochi Malaysia, with our existing dividend policy to distribute no less than 60% of net profit as dividends,” he adds.

Apart from JV, Lim says Daibochi is undertaking an expansion of its own in Malaysia, by investing RM20mil in capital expenditure this year to upgrade existing production capacities and capabilities.

“We are also adding on new customers in the ANZ (Australia-New Zealand) and Southeast Asian markets,” he says.

For now, Lim says they are not looking at expanding into any other countries in the region.

“That is not our priority at the moment. We need to be focused in our execution of our Myanmar JV to make it a successful venture,” he says.

While the current focus of the JV is to serve the local Myanmar market, Lim says the long-term plan is to use the low-cost base facility there to export to other countries in the region.

“We see opportunity to serve some of the more cost-sensitive markets in which we currently cannot compete due to the high-cost of production in Malaysia.

“We will use this as a platform to capture the sales in those Asean markets,” he says.

However, he expects the export portion of DPM to remain below 30% of its business for the first three years.

[The Star] Nurturing youths to their full potential

SEGi will make sure its students receive in-depth knowledge of the syllabus.

SEGi will make sure its students receive in-depth knowledge of the syllabus.

WITH the objective of developing problem solving and critical thinking skills among Malaysian youths, SEGi College Penang’s School of Engineering, Information Technology and Allied Health Sciences organised the Science Discovery Day 2016.

Themed ‘First Among the Best’, the recent event at the campus drew some 200 students from five secondary schools, namely SMK Tinggi Bukit Mertajam, SMK Convent Green Lane, SMK Bagan Jaya, SMK Jalan Damai and SMK Tun Hussein Onn.

The students were introduced to the various science disciplines via five game stations.

There was a Biology and Medical Lab station known as ‘Detector Bone’, an Engineering station called ‘Morse Code Translator’, an ICT station, a Chemistry station and a Physics station.

Besides being tested on fundamental and technical knowledge, they also learnt various skills ranging from building a mechanical car to investigating a murder case.

They also discovered new concepts and techniques in science such as fingerprint detection and ICT components.

The participants had to complete all the games and collect points from each station.

The teams with the highest scores emerged triumphant to take home attractive prizes, souvenirs and certificates of participation.

The top three places went to SMK Convent Green Lane, SMK Jalan Damai and SMK Bagan Jaya.

This exciting event was fully organised by the lecturers and students of the School of Engineering, IT and Allied Health Sciences.

SEGi will definitely spearhead more of such events to encourage students to learn in a fun and engaging manner.

Located in Green Hall, the college offers a wide range of diploma, degree, postgraduate and professional courses in Business, Accounting, Marketing, Human Resource, Early Childhood Education, Mass Communication, Information Technology, Computing, Hotel Management and Tourism.

SEGi provides a unique learning experience with its signature dedication from academicians and management staff.

Care is taken to ensure that students receive personal attention, in-depth coverage of the syllabus and a hands-on approach to learning.

To find out more, contact 04-2633888, WhatsApp/SMS to 017-3203038, email to infopg@segi.edu.my or log on to www.segi.edu.my.

[StarBiz] Myanmar JV expected to lift Daibochi profit

PETALING JAYA: Daibochi Plastic & Packaging’s (Daibochi)’s proposed Mynmar joint-venture is expected to boost its profitability once the project is approved although the company’s net gearing will rise.

CIMB Research said that assuming that the joint venture began operations early next year, it could boost Daibochi’s financial years 2017 and 2018 forecast earnings per share by between 18-22% while expanding the group’s reach in the region.

On Monday, Daibochi announced that it planned to acquire a 60% stake in a joint-venture company, Daibochi Packaging (Myanmar) Co Ltd (DPM)for US$6.8mil (RM29.2mil).

Myanmar’s Smart Pack Industrial Company Ltd (MSP) will inject its assets of plant and equipment into DPM and receive a 40% share of the venture and RM29.2mil in cash.

“In addition, the joint-venture should help boost the group’s pretax profit margin beyond the current 8%.

“This announcement is a positive surprise to us as it should help Daibochi expand its business in the Asean region and position the company to potentially become one of the largest flexible packaging companies in Myanmar, and also in the region,” the research house said in a report yesterday.

As for gearing, the research house projected that Daibochi’s net debt is set to rise from RM41mil to RM70.2mil after the acquisition and net gearing to go up from 0.22 times to 0.38 times.

However, it said this should not be a concern due its strong operational cash flow outlook, while DPM is targeted to pay dividends from the third year onwards.

Meanwhile, MIDF Research noted that since 70% of Daibochi’s export sales came from South-East Asia, the addition of Myanmar could boost export sales as the flexible packaging market size in Myanmar is estimated to grow 22% for the next five years.

“The acquisition is also justifiable by the lower operating costs in Myanmar, notably due to the lower costs of labour.

“While the net gearing could increase to 0.39 times, we think that is still manageable as DPM will be able to fund its future capital expenditure from a bigger internally generating fund,” it wrote in its report.

The contribution from the Myanmar operations could add 2.81sen to the research house’s FY17 earnings per share and 0.79 sen to its distribution per share assumption.

MIDF Research maintains its “neutral” recommendation with an unchanged target price of RM2.14, while CIMB Research keeps its “reduce” call on the stock, pending approval for the set-up.

“At a 2018 forecast 13 times the packaging sector target price to earnings, Daibochi’s share price is worth RM2.37, which offers only 3% upside from its current share price, if we include the potential contribution from the JV,” CIMB Research said.

Daibochi shares ended 2 sen higher at RM2.33 yesterday.