The electronic components manufacturer based in Ipoh, is betting on some of the products of its customers – for example a device that gives touchscreen functionally to non touch displays – for growth.



They make up about 10% of its sales currently (June 2016).



It manufactures components for a range of consumer electronics and technology companies, including SONY, Canon, HP, Panasonic, Hitachi and Nokia as well as Plantronics, Jaybird, Nenonode and XPand.



Nenode owns the brand and technology for AirBar, which projects an invisible light field on the surface of non touch displays that makes it possible to “touch” PC and laptop screens. It is also a USB plug and play device, which can be used on any non touch screen with ease. A magnetic strip behind the device allows it to stick to the screen while a laptop on PC is being used.



Salutica is already manufacturing touch screen devices using infrared technology, for example, for HP printers and other multimedia devices with built in touch screen functionality.



A touch screen computer costs rm2000 more. AirBar costs only rm250 and you can use it on multiple laptops and PCs. Nenode is also talking to PC and laptop manufacturers to build AirBar into their new models. This will create another big market for AirBar - the built in market – after starting with the after market.



Salutica is one of the key technology providers working on AirBar with the Neonode. The group is currently (June 2016) building 2000 samples of all the plastic parts of AirBar, including the lens, light pipe and end caps.



Salutica will be supplying the samples in July 2016. Prospects customers can already pre order AIrBar. The end assembly will be done in Sweden.



Salutica and Neonode are in advanced stage of negotiations for the European company to outsource the Airbar assembly to the group. This could happen as early as Jan 2017.



Neonode expects its assembly line to be running a full capacity by the end of 2016. The Airbar assembly line require a rm10 million investment by Salutica.



Salutica expects this business to be bigger than its OEM contracts and in house brand business.



In the third quarter ended March 31 2016, the company’s Bluetooth headset business accounted for 85.6% of its revenue of rm38 million.



Besides the OEM and Airbar business, Salutica also has an in house brand called FOBO. FOBO portfolio focuses on devices that monitor loved ones and important personal belongings as well as tyre pressure.



It has an ambitious target to grow FOBO sales by more than five times to around rm15 million in the next two to three years from June 2016.



It is also said that Salutica is poised to ride the growing trend of the adoption of Bluetooth technology extended into low power environment such as sensor, hearing aid, fitness and health tracking as well as apparel segments, given its expertise in Bluetooth technology

Mikromb good FA, Short to medium term . TP 0.69