Yi-Lai remains positive, development in Iskandar will benefit tile makers

KULAIJAYA: Ceramic tile manufacturer Yi-Lai Bhd is optimistic on the prospects for building materials, including ceramic tiles, in the years to come buoyed by the robust property development activities in Iskandar Malaysia.

Chairman Zabidi Md Zain said Iskandar Malaysia had boosted the property sector in south Johor.

He said the presence of reputable domestic and foreign developers in Iskandar Malaysia would be the main factor in making the property sector more attractive and vibrant in the southern region.

“The five big boys in Iskandar Malaysia, including Yi-Lai, will benefit immensely from the private property projects as well as the public housing projects,’’ Zabidi told StarBiz after the company’s AGM yesterday.

He said the pie was large enough for the ceramic tile makers as there were thousands of new residential properties coming up in Iskandar Malaysia including those by China developers.

Zabidi said the announcement by the Johor Government to build 28,000 affordable houses in Johor of which 20,000 units would be in Iskandar Malaysia within the next five years would further boost demand for ceramic tiles.

He anticipated demand to grow for the medium-range ceramic tiles in Iskandar Malaysia with affordable housing projects by state-owned and the government-linked companies.

“Demand for the high-end range ceramic tiles will also go up in Iskandar Malaysia in tandem with the increase in prices of residential properties in the economic growth region,’’ added Zabidi.

Independent non-executive director Ong Kheng Swee said buyers of residential properties priced from RM500,000 would expect developers to use high quality ceramic tiles for their houses.

He said white and off-white ceramic tiles were still selling well in the market despite the availability of the earth tones coloured tiles as the former went well with any indoor decor.

Ong said for areas which were constantly and directly exposed to rain and sunlight, customers would go for the matt finished ceramic tiles and those with non-slippery surfaces.

“Demand for digital printing ceramic tiles is also on the rise in recent years and the company sees the segment offering good growth prospects,’’ he said.

Ong said the company had invested RM3mil for three new lines to produce the high resolution tile prints sought by discerning customers.

For the financial year ended Dec 31, 2013 (FY13), Yi-Lai registered RM12.64mil in net profit on RM158.11mil in revenue against RM10.67mil and RM131.36mil respectively in FY12.