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GEFUNG EXPECTS REVENUE GROWTH OF 20% PER ANNUM

November, 06

Gefung Holdings made a strong debut of RM1.38 for A 38 Sen.

From left: Gefung Holdings Bhd managing director with company officials at the company's debut on the Second Board of Bursa Malaysia

Gefung Holdings Bhd, which on Nov 22, made a strong debut on the Second Board, expecting revenue growth of 20% per annum over the next five years, driven mainly by its expansion in China.

The managing director of Gefung, Jeffrey Seo, says "t would invest RM800,000 to build two more factory blocks in China to expand its capacity by 30% by the middle of next year to 40,000-50,000 sq metres per month."

The premium marble manufacturer's China operations now account for 90% of its business. It is one of the top 10 manufacturers of premium marble in that country.

"The (China's) economy is expected to grow steadily by more than 8% annually over the next five years," he told reporters after the listing ceremony at Bursa Malaysia on Nov 22.

Seo says "The company, which assumed Jin Lin Wood Industries Bhd's listing status in a reverse takeover exercise, also planned to move upstream via the acquisition of marble quarry sites in Turkey by next year."

Gefung made an impressive debut, closing at RM1.75, up 75% or 75 sen from its reference price of RM1, with a total of 3.87 million shares done. It opened 38 sen higher at RM1.38.

Seo said Gefung had RM39 million contracts unbilled in hand and had tendered for projects totalling RM45.9 million as at October 31, 2006.

He said company's net profit was expected to reach RM17 million on the back of RM76.7 million revenue for the year ending Dec 31, 2006.

"Gefung has guaranteed pre-tax profits of RM21.64 million, RM28.08 million and RM28.3 million for financial years ending 2006, 2007 and 2008, respectively," he added.

 
 
 
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