Dominant upbeat on export sales

  • Business
  • Tuesday, 25 Aug 2015

JOHOR BARU: DOMINANT ENTERPRISE BHD, a Johor-based manufacturer of flat laminated wood products and moulded wood components, is expecting to see a growth in export sales to 20% of group revenue within the next two years.

Chief executive officer cum deputy managing director Danny Owee said that the company targeted export sales to grow from 15.5% of group revenue this year to 20% in the next two years.

“Dominant’s sales to furniture makers made up 45% of the company’s revenue in the financial year ended March 31 (FY15).

“We have sufficient production capacity to support our customers’ push to enter into new markets, given their overall competitiveness in the global arena,” he said after the company’s EGM here yesterday.

He said exports of locally made furniture were expected to chart double-digit growth this year, after increasing 8.8% year-to-year to RM8bil last year.

“We are planning to set up our operations in Indonesia and the Philippines, where the targeted middle-income group are growing,” he said adding that the company had already penetrated into the Indonesian market through key industrial players.

Owee also declared total dividend payout of 5 sen in respect of FY15, equivalent to about RM6.9mil, representing 30.9% of its net profit.

He said shareholders approved one bonus share for every five shares held and one free warrant for every three share held at an entitlement date to be determined later.

“The dividends will be paid to shareholders on Sept 23 based on the company’s record of depositors on Sept 2.

“The exercise will see an issuance of up to 27.5mil new ordinary share of 50 sen par and up to 45.8 million five-year warrants,” he said adding that the corporate exercises was expected to be completed by the third quarter of this year.

He also said that the bonus shares and warrants would effectively increase the company’s share capital up to a maximum of RM105.4mil, comprising 210.9mil share of 50 sen par.

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