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Gefung rides on China for 20% annual growth
The Sun, 23 November 2006
GEFUNG Holdings Bhd, which made a strong debut on the second Board yesterday, expects an annual revenue growth of 20% over the next five years, driven mainly by its expansion in China. Its managing director Jeffrey Seo said it would invest RM 800,000 to build two more factory block in China to expand its capacity by 30% by the middle of next year to 40,000-50,000 sq metres per month.
The premium marble manufacturer's China operations now account to 90% of its business. It is one of the top 10 manufacturers of premium marble in that country. "The (China's) economy is expected to grow steadily by more than 8% annually over the next five years," he told reporters after the listing ceremony at Busra Malaysia.
Seo said the company, which assumed Jin Lin Wood Industries Bhd's listing status in a reverse takeover exercise, also planned to move upstream via the acquisition of marble quarry sites in Turkey by next year. Gefung made an impressive debut, clsosing at RM 1.75, up 75% or 75 sen from its reference price of Rm 1, with a total of 3.87 million shares done. It opened 38 sen higher at RM 1.38.
Seo said Gefung had RM 39 million worth of unbilled contracts in hand and had tendered for projects totalling RM 45.9 million as at Oct 31, 2006. He said company's net profit was expected to reach RM 17 million on the back of RM 76.7 million revenue for the year ending Dec 31, 2006.
"Gefung has guaranteed pre-tax profits of RM 21.64 million, RM 28.08 million and RM 28.3 million for financial years ending 2006, 2007 and 2008, respectively," he added.
