Friday, October 19, 2007

Dominant to maintain 15% annual growth

Dominant to maintain 15% annual growth
Taken from The Star

16 Oct 07


PETALING JAYA: Dominant Enterprise Bhd is confident of maintaining its revenue growth at some 15% yearly, backed by its foray into Vietnam, local expansion plans and an increase in customer traction.

Executive director Danny Owee said in the past five years since its listing on the Bursa Malaysia second board, the company had been registering about 15% growth in revenue annually.

For financial years (FY) ending March 31 and beyond, we are looking to sustain this ¡V an annual growth of about 15% to 20% on the back of our expansion plans, he told StarBiz.

The company, which transferred to the main board in October 2005, would spend close to RM15mil over the next year to set up a plant in Vietnam and another in Skudai.

We will also be relocating our head office to that area (Skudai).

Johor-based Dominant has 10 subsidiaries which are involved in among others, the manufacturing of environmental-friendly engineered wood mouldings and laminated wood panel products.

It is also involved in the distribution and export of wood-based products globally.

The Vietnam and Skudai factories, expected to begin operations by 2009 and 2010 respectively, are expected to boost the company¡ s production capacity by at least 60%.

Currently running at about 80% production capacity, its three local factories produce about 5,400 cu m of wood products monthly.

We have existing customers in Vietnam, many of which are local furniture companies that have relocated there, so it is easier for us to penetrate the market and move fast, Owee said.

He said Dominant had a representative office in Vietnam for the past two years. We think that it is time to go full-scale in the market which is experiencing a boom in its property and construction sectors, he said.

Overseas earnings were expected to contribute about 20% to total revenue by FY09 and more beyond that, compared with 15% now.

Dominant also has five warehouses in Australia and representative offices in China and Singapore.

To diversify its earnings, Dominant had in 2005 purchased an 8ha site that now sits in the Iskandar Development Region.

Owee said 2ha would be used for its factory and the balance developed into industrial properties that would be leased for rental income.

For its FY07, it posted a net profit of RM13.4mil on revenue of RM275.2mil against a net profit of RM6.6mil on RM223.9mil sales in FY06.

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