SYF Resources foresight to implement strategies to reduce the risk of expansion (Kuala Lumpur 19 hearing) SYF Resources Limited (SYF, 7082, consumer products group) is implementing the expansion strategy to mitigate the adverse impact on the Group's periodic furniture business, which makes the group and the downturn in the economy to enjoy stable earnings base. The group executive director Datuk Seri money Feng Liang said: "In this industry, you may experience a dull 10 years, 2 years and then suddenly experienced a bumper crop currently rising cycle has come, we are going to take full advantage of this opportunity now. time for us to make some money. " He said: "At present, we are implementing 'small factories strategy', that is to set up a wood factory in nearby vendors to support our core business is the production of rubber wood furniture." Qian said: "As long as the demand is there, we will set up more factories now, we are investing in the first two medium density fiberboard (MDF) plant, and will begin operations in May, once put into operation, the monthly available. additional 6000-8000 cubic meters of medium density fiberboard. " He added: "With the furniture board, dining room and bedroom furniture, demand continues to rise, we will increase the number of plants." Since 2010, SYF Resources has been involved in the upstream business, including rubber, timber harvesting, sawmilling and processing activities, as well as the production of semi-finished products. Currently, it has two factories producing particleboard and medium density fiberboard. SYF Resources Strategy small factory so that it can implement lean manufacturing concepts in the factory, in order to improve efficiency. Waste emerging from the upstream production process, will be converted to the manufacture of wood as a raw material, to generate additional sources of revenue, but also can help reduce costs. According to Qian said, the idea is to make the Group to achieve a flexible and cost-effective services in four key business, the furniture, wood, wood and real estate development, the business contributed 25% of the overall annual net profit. He expects the Group in the year ended July 31, 2016 the turnover of the financial year, made the furniture business, will recorded double-digit growth, because it was aware of the new MDF plant in income will increase, because market demand for furniture products continued, and a stronger dollar led to foreign exchange earned benefits. Since last year, due to the decline in lumber prices and a strong US dollar against the ringgit, so that furniture manufacturers expect export earnings will increase. As exports account for about 40% SYF Resources turnover, the company will carry out a partial hedge foreign currency exposure to reduce risk. According to Qian said that although the ringgit against the US dollar fell to six-year low, but the benefits will not be obtained compared with the industry as much. Nevertheless, it continues to allocate resources in the real estate development business, it has to enter the business at the end of 2011, this conservative strategy in the long term might bring stability returns. Qian explained SYF resource management strategy has helped it weather the storm in the furniture industry cyclical, as in 2012, when the shortage of raw materials pushed up costs, as well as the strong ringgit squeezed margins, forcing many businesses out of the market. He said: "We went through a lot of cycles, in good times as long as we are able to take full advantage of opportunities and to maximize profit increase to support the operation of the downturn." Qian admitted: "We are also actively looking for acquisition opportunities in the upstream and downstream businesses, however, a potential acquisition target must be to our existing business has better complementary role, and the price is also affordable. He added: "The acquisition of the object must have a synergistic effect if you can double profits increase after the merger, we are willing to pay a higher purchase price.." Qian said: "One time, we are looking for a potential acquisition target in the downstream business, but the price is not for us like those with predictable income acquisition target, and the synergies between the two sides will enhance profitability.."
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SYF Resources foresight to implement strategies to reduce the risk of expansion
(Kuala Lumpur 19 hearing) SYF Resources Limited (SYF, 7082, consumer products group) is implementing the expansion strategy to mitigate the adverse impact on the Group's periodic furniture business, which makes the group and the downturn in the economy to enjoy stable earnings base.
The group executive director Datuk Seri money Feng Liang said: "In this industry, you may experience a dull 10 years, 2 years and then suddenly experienced a bumper crop currently rising cycle has come, we are going to take full advantage of this opportunity now. time for us to make some money. "
He said: "At present, we are implementing 'small factories strategy', that is to set up a wood factory in nearby vendors to support our core business is the production of rubber wood furniture."
Qian said: "As long as the demand is there, we will set up more factories now, we are investing in the first two medium density fiberboard (MDF) plant, and will begin operations in May, once put into operation, the monthly available. additional 6000-8000 cubic meters of medium density fiberboard. "
He added: "With the furniture board, dining room and bedroom furniture, demand continues to rise, we will increase the number of plants."
Since 2010, SYF Resources has been involved in the upstream business, including rubber, timber harvesting, sawmilling and processing activities, as well as the production of semi-finished products. Currently, it has two factories producing particleboard and medium density fiberboard.
SYF Resources Strategy small factory so that it can implement lean manufacturing concepts in the factory, in order to improve efficiency. Waste emerging from the upstream production process, will be converted to the manufacture of wood as a raw material, to generate additional sources of revenue, but also can help reduce costs.
According to Qian said, the idea is to make the Group to achieve a flexible and cost-effective services in four key business, the furniture, wood, wood and real estate development, the business contributed 25% of the overall annual net profit.
He expects the Group in the year ended July 31, 2016 the turnover of the financial year, made the furniture business, will recorded double-digit growth, because it was aware of the new MDF plant in income will increase, because market demand for furniture products continued, and a stronger dollar led to foreign exchange earned benefits.
Since last year, due to the decline in lumber prices and a strong US dollar against the ringgit, so that furniture manufacturers expect export earnings will increase.
As exports account for about 40% SYF Resources turnover, the company will carry out a partial hedge foreign currency exposure to reduce risk. According to Qian said that although the ringgit against the US dollar fell to six-year low, but the benefits will not be obtained compared with the industry as much.
Nevertheless, it continues to allocate resources in the real estate development business, it has to enter the business at the end of 2011, this conservative strategy in the long term might bring stability returns.
Qian explained SYF resource management strategy has helped it weather the storm in the furniture industry cyclical, as in 2012, when the shortage of raw materials pushed up costs, as well as the strong ringgit squeezed margins, forcing many businesses out of the market.
He said: "We went through a lot of cycles, in good times as long as we are able to take full advantage of opportunities and to maximize profit increase to support the operation of the downturn."
Qian admitted: "We are also actively looking for acquisition opportunities in the upstream and downstream businesses, however, a potential acquisition target must be to our existing business has better complementary role, and the price is also affordable.
He added: "The acquisition of the object must have a synergistic effect if you can double profits increase after the merger, we are willing to pay a higher purchase price.."
Qian said: "One time, we are looking for a potential acquisition target in the downstream business, but the price is not for us like those with predictable income acquisition target, and the synergies between the two sides will enhance profitability.."