[The Edge Malaysia] Daibochi records highest 4Q profit of RM24.6m

By Fatin Rasyiqah Mustaza

KUALA LUMPUR (Feb 21): Daibochi Plastic and Packaging Industry Bhd posted its highest net profit of RM24.6 million for its fourth quarter financial year ended December 31, 2012 (FY12), up 22.7% from RM20.1 million from its corresponding quarter in 2011.

The groups’ record net profit was achieved through stable prices of raw materials and the adaptation of holistic approach in enhancing the group’s operations in 2012, not only in terms of capturing growth of key customers but also in improving its internal processes.

Its current increase in net profit for FY12 was on the back of RM278.8 million in revenue, with the packaging segment contributing the largest portion with RM275.8 million.

In an announcement, the company declared a fourth interim dividend of 3.5 sen per share. Daibochi has declared total dividends of 16.5 sen per share in respect of FY12.

Daibochi had earlier announced the purchase of a 5.2-acre land in Melaka, for the purpose of building the new factories. Construction of the new factories is targeted to commence in the second quarter of 2013.

“We intend to invest RM45 million over the next three years to build and equip new manufacturing facilities in Melaka to expand our production capacity”, said Thomas Lim, Daibochis’ managing director.

“Our expansion plan through the new factory will help us to cater to our customers’ future requirements, and sustain us for the long haul,” said Lim.

Daibochi intends to leverage on this foundation in the coming year, to capture the tremendous potential in the regional flexible packaging market.

“We largely expect FY2013 to be a turning point for the group, as we hope to gain a more significant entry into supplying flex pack for new sectors, namely medical gloves and electronics packaging”, he added.

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