(PRESTAR, 9873, Main Board Industrial Products Group) is actively expanding its business reach to the ASEAN market with a population of 600 million, while looking at a number of major road fence supply projects.
Hongda Resources Director Dato 'Du Youping said after the shareholders' meeting that the company had an office and warehouse in Indonesia four years ago and was responsible for the distribution of Malaysian products. In view of this, the company has expanded its business to Thailand this year And set up an office in the area.
The next goal is to enter the Philippine market
He pointed out that the next goal of Hongda Resources is to enter the Philippine market.
Du Youping pointed out that Hongda resources to withdraw from the Vietnamese market, because the local business environment is full of challenges, despite the low wages, but the Vietnamese dong is a serious devaluation, almost 30%, plus bank interest up to 18%, far more than the Malaysian interest 5 to 6% high.
"After considering, as long as the strengthening of automation in Malaysia, can still save costs, therefore, will decide to transfer the Vietnamese manufacturing industry back to Malaysia."
Du Youping said Hongda Resources currently does not plan to open manufacturing plants in markets outside of Malaysia and will focus on the marketing business of the ASEAN market.
25% of the turnover of Hongda Resources is from the steel processing business, the remaining is the downstream manufacturing business; steel processing business mainly for the domestic market, downstream manufacturing business, export market turnover contributed 15%.
Du Youping pointed out that Hongda Resources is one of the largest fence suppliers in Malaysia with a market share of more than 50%.
He said Hongda Resources also has operations in East Malaysia and is responsible for supplying fencing rails on Pan Borneo Avenue and participating in the West Coast Highway project.
He pointed out that the company also has a bid to supply the road fence.
Duyou Ping believes that the steel market is still challenging, mainly by fierce competition, high prices and rising staff salaries and other aspects of the challenge, but still optimistic about the development prospects of Hongda resources.
Du Youping also said that the company's business involves the middle and downstream, therefore, can play a leverage, assuming that the price of steel raw materials, the middle reaches of the business will be good, on the contrary, the downstream business will benefit.
Du Youping pointed out that with a number of different suppliers pick up, will make the raw material prices more competitive, and cost savings.
In addition, the small shareholders who do not want to be named, pointed out that Hongda resources involved in the manufacture of auto parts, customers, including Proton, the second domestic car, etc., and in Puteng and China Geely alliance, the management believes that will be able to drive the business growing up.
Circumstances by reason of which change has occurred Exercise of Employees' Share Option Scheme ("ESOS") Nature of interest Direct Interest Direct (units) 2,390,230 Direct (%) 1.228 Indirect/deemed interest (units) 72,116,000 Indirect/deemed interest (%) 37.04 Total no of securities after change 74,506,230 Date of notice 31 May 2017 Date notice received by Listed Issuer 31 May 2017
Keypoints: -FY16 margins improved cos of Megasteel closure and now they can source raw material from overseas, namely from POSCO which they already have JV relationship. POSCO is world's 4th largest steel mill. Cheaper, reliable, on time delivery. This kind of margins will be sustainable as long as they are not forced to source from suppliers like megasteel
-Prestar is supplier and maintainence contractor of highway guardrails. They supplied to North-South Highway and most parts of Selangor e.g. Federal highway, DUKE etc. They will supply for East Coast highway and Pan Borneo and are looking to tap into ASEAN market too
-Their wheelbarrows and handtrucks are supplied around Malaysia's and Indonesia's palm oil estates. They already have operations and warehouse in Indonesia, so its not hard to expand their reach
Certainly sounds like Prestar is going in the right direction and management sounds bullish!
77huat77. Nothing wrong with them doing ESOS. As they already mentioned in the agm, the Toh family is increasing their stake in the company. You can check the announcement history that they acquired alot of shares in open market since 2014-2016, raising their family stake from ~40%-~60% (rough calculation) now.
And now they are doing ESOS to increase their stake further. In AGM, they hinted better prospects in the company for the reason of this increased stake, and also told shareholders to buy more. Of course the insiders have to believe in their own company for them to increase their stake.
That aside, the two malay directors (Haji and Nahar) have been exercising ESOS and disposing shares in open market. Let me ask you. Do you think these two malay directors have a big role in the company? Or are they on the board for other reasons? in fact, Haji didnt even attend the AGM. Did the Toh family dispose their shares after ESOS?
yeah. Rocketfuel write it so honestly...omg.... The Toh family is buying like mad. I guess............I hope NO, they going to privatise it once turn NET CASH soon.
Why share with you the next 3 years great profit, if I am Toh Family. I work my arse off, end up pay you guys?
Unless I have expansion plan too, need funding from equity market, so I get to have that
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Posted by probability > 2017-05-31 20:48 | Report Abuse
(PRESTAR, 9873, Main Board Industrial Products Group) is actively expanding its business reach to the ASEAN market with a population of 600 million, while looking at a number of major road fence supply projects.
Hongda Resources Director Dato 'Du Youping said after the shareholders' meeting that the company had an office and warehouse in Indonesia four years ago and was responsible for the distribution of Malaysian products. In view of this, the company has expanded its business to Thailand this year And set up an office in the area.
The next goal is to enter the Philippine market
He pointed out that the next goal of Hongda Resources is to enter the Philippine market.
Du Youping pointed out that Hongda resources to withdraw from the Vietnamese market, because the local business environment is full of challenges, despite the low wages, but the Vietnamese dong is a serious devaluation, almost 30%, plus bank interest up to 18%, far more than the Malaysian interest 5 to 6% high.
"After considering, as long as the strengthening of automation in Malaysia, can still save costs, therefore, will decide to transfer the Vietnamese manufacturing industry back to Malaysia."
Du Youping said Hongda Resources currently does not plan to open manufacturing plants in markets outside of Malaysia and will focus on the marketing business of the ASEAN market.
25% of the turnover of Hongda Resources is from the steel processing business, the remaining is the downstream manufacturing business; steel processing business mainly for the domestic market, downstream manufacturing business, export market turnover contributed 15%.
Du Youping pointed out that Hongda Resources is one of the largest fence suppliers in Malaysia with a market share of more than 50%.
He said Hongda Resources also has operations in East Malaysia and is responsible for supplying fencing rails on Pan Borneo Avenue and participating in the West Coast Highway project.
He pointed out that the company also has a bid to supply the road fence.
Duyou Ping believes that the steel market is still challenging, mainly by fierce competition, high prices and rising staff salaries and other aspects of the challenge, but still optimistic about the development prospects of Hongda resources.
Du Youping also said that the company's business involves the middle and downstream, therefore, can play a leverage, assuming that the price of steel raw materials, the middle reaches of the business will be good, on the contrary, the downstream business will benefit.
Du Youping pointed out that with a number of different suppliers pick up, will make the raw material prices more competitive, and cost savings.
In addition, the small shareholders who do not want to be named, pointed out that Hongda resources involved in the manufacture of auto parts, customers, including Proton, the second domestic car, etc., and in Puteng and China Geely alliance, the management believes that will be able to drive the business growing up.