The key financial highlights based on the historical audited combined financial statements of the Group for the Financial Years Under Review are as follows:
Major Customers
The table below lists our top five (5) major customers for FYE2023:
The top 5 major customers contributed 34.78% of the revenue. The company mentioned they are not dependent on any major customer as the revenue contributed from the top 5 major customers generally varies from year to year as they have a diverse customer base of over 300 customers during FYE 2020 to FYE 2023.
Major Suppliers
The table below lists our top five (5) major suppliers for FYE 2023:
The top 5 suppliers account for 30.03% of the purchases. The management has also mentioned that the group is not dependent on any major suppliers, as they are able to source similar seafood from their pool of suppliers. Additionally, there will not be any switching costs involved if they were to purchase seafood supplies from different suppliers, as they do not have any long-term or exclusive contracts with any of their suppliers.
According to Providence Strategic's research, the frozen seafood processing industry in Malaysia, as indicated by the overall industry revenue of seafood processing companies in Malaysia, has been growing at a CAGR of 9.7% between 2015 and 2023. Moving forward, PROVIDENCE estimates that the seafood processing industry in Malaysia will grow at a CAGR of 9.4% between 2024 and 2026.
The industry is expected to be driven by growing exports to international markets in light of rising global demand, particularly in Asia Pacific, which has the highest per capita consumption of seafood globally. Between 2017 and 2023, retail sales volume and retail sales value of frozen seafood in Asia Pacific grew at CAGRs of 3.5% and 6.7%, respectively. The frozen seafood processing industry in Malaysia is also expected to be driven by local demand for seafood as Malaysia is among the world’s top 10 seafood
consumers.
As an industry player in the frozen seafood processing industry in Malaysia, OFB Group stands to benefit from the positive outlook of the frozen seafood processing industry and frozen seafood market. The Group’s plan to grow its exports into China will be driven by the growing market for frozen seafood products in China. China is a major market in Asia Pacific for frozen seafood products, constituting 74.7% and 55.8% of retail sales volume and retail sales value of frozen seafood products in Asia Pacific in 2023.
Further, OFB Group is expected to benefit from the growing dried seafood market in light of its future plan to expand into the processing and trading of dried seafood products. Globally, the dried seafood market size has been growing at a CAGR of 3.6% between 2017 and 2023.
Source: Providence Strategic
The future plans and strategies of the Group are as follows:-
Opportunities
Risk
Click here to refer the IPO - Ocean Fresh Bhd (Part 1)
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