Share price on downward trend, but that is the current market. Falling all due to external factors. Asiaply quitely building new factories that will quadruple their production. Asiaply looking like a bargain @ RM0.10???.....I think so. Still holding.
Asiaply is fitting out a factory that will permit them to quadruple their current level of production. Asiaply are fairly conservative they did not do that without an end purchaser in mind. They will also have the additional income now being fed in from the biogas plant. The wider external factor, e.g. Russian / Ukraine war, inflation, Covid, impending elections etc. Plus the supply delivery challenges have effected all markets across the world, nobody could have anticipated all those factors. I am still confident in asiaply, but expect to have to wait through the current market turbulence. So I am holding.
Benny, how quickly you think all this good stuff is going to happen ?
ASIA POLY HOLDINGS BERHAD ("ASIA POLY" OR "THE COMPANY") SHARE SALE AGREEMENT - ACQUISITION OF EQUITY INTEREST IN KENG IMPORTS & EXPORTS SDN. BHD. [197501003872 (25561-P)] We refer to the Company’s announcements dated 13 January 2022 and 19 January 2022 in relation to the Acquisition of Equity interest in Keng Imports & Exports Sdn. Bhd. [197501003872 (25561-P)]("Acquisition").
The Board of Directors of ASIA POLY wishes to announce that the Company had on 23 May 2022, received a confirmation from the Company's solicitors that the Acquisition has been duly completed on 23 May 2022.
So new factory legals only completed 3 months ago....still going to need time to purchase, fit out and build new infra.
Asiapoly had been in discussions with a purchaser for their product, but the concern of the purchaser was that there current factory was too small to deliver the quantity they needed. So Asiaply started to look for a new and bigger factory, in the end they landed up buying KENG IMPORTS & EXPORTS SDN. BHD who had a suitable sized factory that was very close to there existing unit. Once this is fitted out and running they will be able to produce around 3200 metric tonnes, they originally could only produce 800 tonnes . They acquired KENG IMPORTS & EXPORTS SDN. BHD back in May, so they been working on it for around 5 months. Looking forward this factory will kick into production at some point.
All this really came about through covid, as during that time there was strong demand for the plastic shielding , as a result Asiapoly started to increase sales in America, Europe & Middle East. This resulted in them becoming more well known and as a result they got opportunities to do more business.
Asiapoly is the only listed company on Bursa that produces acrylic sheet by the cold manufacturing process, most use a hot method, which results is that opaqueness. The cold method allows for great visual acuity which superior to glass.
The Board of Directors of Asia Poly wishes to announce that the Company via its wholly-owned subsidiary, Asia Poly EV Tech Sdn Bhd (“APEVTSB”) had on 15 March 2021 together with Cyprium Wire Technology Sdn Bhd (a subsidiary of Ta Win Holdings Berhad) formed a new company known as Cyprium Asiapoly EV Sdn Bhd (“CAESB”) under the Companies Act 2016 with the principal activities of manufacturing and distribution of power and signal distribution system, high tension cable, battery cable and any other automotive parts or components for automobile and electric vehicles using patented cross-linking/ionizing radiation treatment which utilises electron beam irradiation technology as well as cast acrylic products for the automotive industry.
Oh ya.. Keng imports.. it took them quite some time for the 3rd line.. so don’t get your hope up too early for this.. Their sales to US is getting worse.. No news from solar panel and automotive rear screen.. Acrylic still not scratch resistance.. And prone to heat under the sun may cause it to release harmful gas.. US is going to recession.. So many expansion.. Still can sell to US?
'“The US market alone is probably worth US$1.2 billion per annum. Our total exports to the US are merely RM20 million per year. We are relatively small in the global market, but of course, the market potential is huge,” Yeo says.
Post-pandemic, the next big thing for Asia Poly could be serving the automotive and solar panel industries.
“Today, the sports car and electric vehicle (makers) are making window, windshield, lamp and meter screens using acrylic instead of glass, which is too heavy.”
He reveals that Asia Poly has been approached by a solar company and is now exploring the possibility of supplying acrylic to it.
“There are still certain criteria to be met. We are working closely ... we will see if we can achieve the quality and volume that they require.”
A year later they invest in a factory that boosting their production capacity from 800 tonnes to 3200 metric tonnes. quadrupling production. Back in 2020 they were only thinking to double production up to 1600...Nobody does that on a speculative basis....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....