Category Archives: News Room

[Borneo Post Online] High achievers receive Segi’s Principal Award

Principal Award recipients and staff.

Principal Award recipients and staff.

KUCHING: Segi students who achieved a cumulative grade point average (CGPA) of 4.0 received the Segi College Sarawak Principal Award recently.

Segi College principal Ivy Lau presented the awards.

“I am very proud of our students for their outstanding academic achievements. I hope other students will see them as role models and be motivated to excel in their own studies,” she said in a press release yesterday.

The recipients were Lim Foo Ee, Angelina Leonora Raelo, Priscilla Sim Chin Ern, Lility John Fisher, Michelle Lee Yang, Wong Yun Heng, Kuek Yi Wen, Irene Chin Siew Ching, Ng Yeng Yian, Yeviona Moh Mei Yeng, Shanaz Anne Gamburud, Angel Thai, Luk Ying Tien, Yii Chii Tin, Nurul Azida Bujang Lee, Tan Yan Meng and Yii Chung Wie.

They were from various programmes – Bachelor of Arts (Hons) Accounting and Finance 3+0, Bachelor of Science 4+0 (Upper Iowa University), Bachelor of Science in Communication 4+0 (TROY University), Diploma in Medical Laboratory Technology (DMLT), Diploma in Early Childhood Education (DECE), Diploma in Accountancy (DIA), Diploma in Business Administration (DIBA), Diploma in Graphic Design (DIGD), Diploma in Islamic Banking (DIIB), Diploma in Mass Communication (DIMC), Diploma in Baking and Pastry Arts (DIBPA) and Foundation in Commerce (FIC).

Luk from the DECE programme said recognition, inspiration and motivation were values he sees in Segi College.

“I believe Segi lays down a strong foundation in Early Childhood Education and it has been a wonderful experience being part of the Segi family,” said Luk.

The award gives recognition to students who achieved the CGPA in the previous semester.

Segi College Sarawak believes in acknowledging excellent students and encouraging them to excel even further in their academic performance as well as their careers after graduation.

Sijil Pelajaran Malaysia (SPM) or Unified Examination Certificate (UEC) high achievers can apply for Segi College Sarawak scholarships.  Segi College Sarawak programmes are recognised by the Ministry of Higher Education and the Malaysian Qualifications Agency (MQA).

For more information go to www.segi.edu.my, call 082-252566, or visit the main campus at 211, Jalan Bukit Mata here.

[StarBiz] Matrix Concepts Q2 net profit up to RM46.5mil

By Ganeshwaran Kana

PETALING JAYA: Matrix Concepts Holdings Bhd’s (Matrix Concepts) net profit for the second quarter of financial year 2017 (2QFY17) rose by 49.5% to RM46.5mil, on the back of its revenue which increased by 85.3% to RM224.9mil in the same period.

Via a press release on Tuesday, the property developer announced that it also recorded 11.3% higher property sales of RM506.4mil in the first half of financial year of 2017 (1H17), due to strong demand for affordable homes in its flagship Bandar Sri Sendayan township.

“The commendable performance was achieved despite ongoing industry challenges, attributable to higher billings of current projects and new sales.

Of the total 2QFY17 revenue, sales of residential and commercial properties contributed RM184.3mil and RM15.6mil respectively, while sales of industrial land contributed RM18.9mil. The group’s investment properties comprising Matrix Global Schools and d’Tempat Country Club made up the remaining RM6.1mil.

For 1H17, the group recorded revenue and net profit of RM421.1mil and RM98.4mil respectively, representing a growth of 74.1% and 61.5% from the corresponding period a year ago.

“We are fully committed to achieving our new sales target of RM1bil for the current financial year ending 31 March 2017 and by leveraging on our strategic location and track record of delivering distinctive yet affordable homes, Matrix Concepts intends to launch RM550mil worth of new projects for the rest of FY17,” said Matrix Concepts chairman Datuk Haji Mohamad Haslah bin Mohamad Amin.

The property developer’s unbilled sales rose to a record high of RM765.3mil as at 30 September 2016, to be recognized until 2018. Matrix Concepts has also declared a second interim dividend of 3.25 sen per share.

The company is currently undertaking several projects, mainly at its two flagship townships of Bandar Sri Sendayan in Seremban and Bandar Seri Impian in Kluang.

[StarBiz] Analysts positive on Daibochi deal

By Ganeshwaran Kana

PETALING JAYA: Daibochi Plastic & Packaging’s (Daibochi) US$6.8mil (RM29.2mil) acquisition of a 60% stake in Daibochi Packaging (Myanmar) Co. Ltd. (DPM), has been optimistically received by analysts.

CIMB Research said on Tuesday that the deal will be able to boost the group’s net profit once it is approved by the authorities, although the group’s net gearing is projected to rise to 0.38 times from 0.22 times hitherto.

DPM is a joint-venture (JV) company in which 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 JV and US$6.8mil in cash (RM29.2mil).

CIMB Research has highlighted that the JV announcement is a positive surprise 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.

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

“While Daibochi’s net debt is set to rise from RM41mil to RM70.2mil, we think this should not be a concern due its strong operational cash flow outlook, ” said CIMB Research in its report.

The research house noted that Daibochi’s forecast earnings per share for the financial years of 2017 and 2018 (FY17-18) could rise by 18-22%.

CIMB Research has maintained its “reduce” call on Daibochi’s shares, pending approval for its Myanmar’s JV. Target price is also maintained at RM1.93.

Meanwhile, MIDF Research is also positive on the collaboration as Daibochi’s 60% stake in DPM can contribute around 10% to its FY17 profit before tax estimates, assuming that the deal is completed by the first half of the year. From FY18 onwards, Myanmar could contribute 18- 20% to the group’s profit before tax.

The research house said that since 70% of Daibochi’s export sales come 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,” said MIDF Research in its report.

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

MIDF Research is also maintaining its “neutral” recommendation with an unchanged target price of RM2.14.

[StarBiz] Daibochi to invest RM29mil in Myanmar JV company

By P. Aruna

In agreement: (From left) Daibochi executive director Low Jin Wei, Lim, chairman James P. Edwin Louis Pushparatnam, MSP executive director Kyaw Win Tun and business development manager Ye Wint Oo at the MoA signing ceremony to set up a joint venture in Myanmar

In agreement: (From left) Daibochi executive director Low Jin Wei, Lim, chairman James P. Edwin Louis Pushparatnam, MSP executive director Kyaw Win Tun and business development manager Ye Wint Oo at the MoA signing ceremony to set up a joint venture in Myanmar

KUALA LUMPUR: Daibochi Plastic and Packaging Industry Bhd will invest US$6.8mil (RM29mil) for a controlling stake in a new joint venture company to tap into the flourishing consumer packaging market in Myanmar.

The flexible packaging manufacturer entered into a Memorandum of Agreement (MoA) with Myanmar Smart Pack Industrial Company Ltd (MSP) to set up its first overseas manufacturing facility in Myanmar, under the JV company, Daibochi Packaging (Myanmar) Co Ltd (DPM).

The JV company, in which Daibochi will have a 60% stake, will take over MSP’s existing business, equipment and premises in Yangon, Myanmar.

MSP will hold the remaining 40% stake after injecting its entire assets into DPM.

Daibochi managing director Thomas Lim said the group will also invest 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 manufacturing facility there.

He said the investments would be funded via a combination of internally-generated funds and bank borrowings.

Funding for the additional capital expenditure, he said, would largely be from the cashflow of the JV company itself.

“The profit margin in Myanmar is very good, partly because of their low cost base.

“We are expecting a very strong cashflow from operations there.

“We are not expecting any fresh capital injection from the shareholders of either company,” he told reporters after the signing of the MoA.

As it was a brownfield investment, he said the JV was expected to contribute positively to the topline and bottomline of the group within the first year of operations.

DPM is expected to post over US$8mil in revenue during its first year of operations.

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

Lim said Daibochi will bring in the necessary investment to expand the existing product range, particularly to serve the food and beverage industry.

“While our main objective is to tap into the fast-growing Myanmar market, due to the low cost base, we see opportunity to export out of Myanmar,” he said.

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

[The Sun Daily] Daibochi in maiden foray into Myanmar

Wan Ilaika Mohd Zakaria

KUALA LUMPUR: Flexible packaging manufacturer Daibochi Plastic and Packaging Industry Bhd plans to invest up to RM52.6 million for its maiden foray into Myanmar via a joint venture (JV) company, namely Daibochi Packaging (Myanmar) Co Ltd (DPM).

Its investment will be in the form of RM29 million for a 60% stake in the joint venture company and about RM23.6 million for capital expenditure over a three year period.

Daibochi yesterday signed a memorandum of agreement (MoA) with Myanmar Smart Pack Industrial Company Ltd (MSP) to establish a production facility in Yangon, Myanmar to manufacture, market, sell and distribute flexible packaging within the country, as well as to export the product.

Daibochi will fund its equity investment through a combination of internally generated funds and bank borrowings. MSP in turn will inject its entire assets of plant and production equipment into DPM for the balance 40% stake.

The remaining capital expenditure will be invested via Daibochi’s internally generated funds over a three-year period to enhance the facility’s production capacity, quality and efficiency.

Speaking to reporters at the signing ceremony yesterday, its managing director Thomas Lim (pix) said the JV would allow the group to expand its packaging business into Myanmar’s emerging market and benefiting from the lower manufacturing and labour costs.

“DPM’s low manufacturing cost would grant us a competitive advantage in expanding our exports across the Asean region,” he said, noting that group’s export sales is expected to contribute 65% to its revenue within a three-year period, from 55% currently, driven by the new facility.

“As with most of the Malaysian manufacturing sector, Daibochi Malaysia currently faces an acute shortage of manpower, hence access to Myanmar’s large pool of labour would help to alleviate the issue,” Lim added.

Commenting on the JV company’s strategy, Lim said the company will develop new product lines for its existing customer base, in addition to securing supply contracts with more growth-oriented domestic brands.

“The next leap is to transform DPM into an internationally-regarded supplier to leading multinational brands,” he noted.

Currently, 80% of the group’s sales is derived from multinational corporations including Nestle, PepsiCo and Mondelez International.

The JV company is expected to post more than US$8 million (RM35.2 million) in revenue in its first full year operation, based on MSP’s annualised 2016 financials. However, the MoA is still awaiting for authority approvals, which is expected to be secured within the next three to six months, Lim added.

At present, Daibochi has two manufacturing facilities in Malacca, where it exports its products to Australia, New Zealand and Southeast Asian countries.

[NST Online] XOX Bhd shareholders okayed issuance of 250mln new shares to Macquarie Bank

KUALA LUMPUR: XOX Bhd shareholders have approved the placement of shares to Macquarie Bank Ltd at the company extraordinary general meeting here today.

The company would now pursue to issue and allot up to 250 million new ordinary shares of 10 sen each to the bank.

The corporate exercise would represent 42.03 per cent of its existing issued and paid-up share capital and about 29.59 per cent of its enlarged issued and paid-up share capital after the share issuance.

The exercise would allow the mobile telecommunications products and services provider to raise gross proceeds of RM25 million assuming Macquarie fully subscribes to the allotted shares.

XOX group chief executive officer Ng Kok Heng said the exercise is to fuel the planned expansion of its Voopee mobile application in Malaysia as well as in overseas markets such as Indonesia, Thai and Philippine markets.

“Currently, we are in the midst of discussion with some of them. The expansion is subject to the finalisation of the commercial terms.

“It has high potential to be marketable to other regions as well, besides Asean,” he said after the meeting shareholders yesterday.

Voopee allows smartphone users to have an additional local area mobile number without a subscriber identification module (SIM) card.

Currently, Voopee has about 147,000 subscribers in Malaysia.

Ng said the SIM card free application was expected to be the next generation mobile service, which could be a unique solution to the expensive roaming charges and relevant to frequent travelers.

Read More : http://www.nst.com.my/news/2016/11/188984/xox-bhd-shareholders-okayed-issuance-250mln-new-shares-macquarie-bank

[Malaysian Reserve] Daibochi To Invest RM29.5m In Myanmar JV

Mark Rao

Daibochi Plastic and Packaging Industry Bhd will invest US$6.8 million (RM29.5 million) to form a joint venture (JV) with Myanmar Smart Pack Industrial Co Ltd (MSP) and tap into Myanmar’s emerging flexible packaging industry.

Daibochi chairman James Edwin said the deal would also take advantage of Myanmar’s low manufacturing cost and high labour supply.

Under the memorandum of agreement (MoA) signed yesterday, the flexible packaging manufacturer and distributor will retain a 60% stake through its wholly owned subsidiary, Daibochi Flexibles Sdn Bhd, in the JV to be called “Daibochi Packaging (Myanmar) Co Ltd” (DPM).

Edwin said the South-East Asian region is an opportune venture for the group because of its more than 600 million population and the rising affluence spurred by economic development.

“Myanmar, in particular, has captured our attention following the recent liberalisation of its once-closed economy and pro-business government policies in order to spur economic acceleration.

“We believe that Myanmar is at the cusp of a tremendous growth story,” he said in his speech during the MoA signing in Kuala Lumpur yesterday.

According to market intelligence provider PCI Wood Mackenzie, Myanmar’s flexible packaging market was valued at US$40 million in 2014, while it is projected to grow by 22% annually over the next five years compared to only 6% in previous years.

Under the JV agreement, Daibochi will provide the necessary equipment to expand MSP’s product range from home personal care, to include food and beverage products as well.

Meanwhile, MSP will inject its entire assets of plant and production equipment into the JV, representing the remaining 40% stake.

The JV is further projected to earn over US$8 million in revenue for its first year upon commencement of its operations.

“This JV with MSP is certainly timely, as it allows Daibochi to gain a first-mover advantage to tap into the vast potential in Myanmar,” Edwin said.

“At the same time, DPM would benefit from a host of synergies in terms of product range, technical know-how, labour supply and raw material procurement, which would enhance our competitive edge.”

Meanwhile, Daibochi MD Thomas Lim Soo Koon said the JV will utilise the low manufacturing costs in Myanmar as an export base for the South-East Asian markets.

“The main objective is to tap into the fast growing Myanmar market. However, because of Myanmar’s lowcost base, we see an opportunity to export out of the country to customers that we are familiar with.

“Due to the high-cost base in Malaysia, we cannot tap into those markets otherwise,” Lim noted.

He said the JV will be driven mostly by its Myanmar base for the next three years, with over 70% allocated for the import market.

The export ratio is expected to increase after this period. Currently, 55% of Daibochi’s sales stems from export markets.

Daibochi is planning to invest an additional US$5.5 million over the next three years in capital expenditure, generated exclusively from internally generated funds.

[The Sun Daily] Daibochi to invest RM29m to expand into Myanmar

Wan Ilaika Mohd Zakaria

KUALA LUMPUR: Flexible packaging manufacturer Daibochi Plastic and Packaging Industry Bhd plans to invest RM29 million (US$6.8 million) to make its first foray in Myanmar via a joint venture company, namely Daibochi Packaging (Myanmar) Co Ltd (DPM).

Daibochi today signed a memorandum of agreement (MoA) with Myanmar Smart Pack Industrial Company Ltd (MSP) to establish a production facility in Yangon, Myanmar. Daibochi and MSP will own 60% and 40% stake in DPM respectively.

“Through DPM, we would have our first manufacturing facility in a foreign country, building on MSP’s ongoing business,” its chairman P. James Edwin Louis Pushparatnam said at the signing ceremony today.

Edwin said DPM is expected to post more than US$8 million in revenue in its first full year operation, based on MSP’s annualised 2016 financials.

[Oriental Daily] 耐慕志抢进缅甸塑料包装领域

(吉隆坡14日讯)与缅甸厂商成立联营公司,耐慕志(DAIBOCI,8125,主板工业股)投资680万美元(约2900万令吉)进军当地塑料包装领域,料可在首年取得超过880万美元(约3800万令吉)的营收。

耐慕志是在今早宣布,与缅甸Smart Pack工业公司(简称MSP)签署备忘录(MOA),双方將成立一家60:40联营公司–耐慕志包装(缅甸)公司(简称DPM),其中MSP將把所有资產与业务注入新公司。

DPM预计可在3-6个月內註册,並获得缅甸政府给予3-5年的税务豁免。

耐慕志董事经理林树坤在记者会上表示,2014年缅甸的软包装市场总值4000万美元,未来5年料每年取得双位数的成长,拥有庞大商机。

「目前MSP的產能使用率只有50%,我们相信很快能取得足够订单,让其销售翻倍。此外,耐慕志的生產技术和在饮食包装领域的经验,將帮助MSP的业务取得巨大突破,我们会在3年內投资额外550万美元(约2360万令吉)的资本开销。」

30%產品出口东盟

MSP目前主攻国內家用產品包装,在缅甸拥有约10%市占率。受益於该国相对便宜的人力资源成本,未来2-3年,DPM將出口30%產品至其他东盟地区。

林树坤预测,DPM料在2017財政年(12月31日结账)次季开始作出贡献,並在3年后派息。

同期耐慕志的营收和税前净利为1亿8673万令吉和1550万令吉。

「耐慕志在大马面对人力资源严重不足的问题。透过缅甸的人口优势,我们的出口贡献估计会从目前的55%提高至65%。」

配合这项重要宣布,耐慕志股票今早从9时48分开始暂停交易一小时。最终以2.31令吉掛收,全天无起落,成交量13万零300股。

[StarBiz] Daibochi to invest RM29m to expand into Myanmar

BY P. ARUNA
KUALA LUMPUR: Daibochi Plastic and Packaging Industry Bhd will invest USD6.8mil (RM29mil) to set up a joint venture company in Myanmar to tap into the growing consumer packaging market there.
The flexible packaging manufacturer had on Monday inked an memorandum of agreement with Myanmar Smart Pack Industrial Company Ltd (MSP)  to set up a production facility in Myanmar, under the JV company, Daibochi Packaging  (Myanmar) Co. Ltd. (DPM).

The JV company, in which Daibochi will have a controlling stake, will take over MSP’s existing business, premises and equipment in Myanmar.

Daibochi managing director Thomas Lim said the group also plans to invest an additional capital expenditure of US$5.5mil (RM23.6mil) over three years to enhance the production capacity, quality and efficiency of the manufacturing facility there.

“We believe that Myanmar is poised to witness a high growth trajectory, propelled by the increasing economic development and anticipated influx of global brands of fast moving consumer goods and food and beverage as the country opens up.

“The significantly lower manufacturing costs in Myanmar also enable us to enhance our competitive advantage in the export market,” he told reporters.