Pentamaster Corp Bhd (PMCB), slated to list on the KLSE second board on July 23, is on track to achieve the forecast pre-tax profit of RM14.6mil for the year ending Dec 31, 2003, said its chief executive officer Chuah Choon Bin
In fact, we are looking at achieving a higher pre-tax profit this year based on the current performance of the company,'' he said after launching the company's prospectus in Kuala Lumpur yesterday.
He said the forecast pre-tax profit of RM14.6mil was a conservative figure that the company had arrived at in 2001 as part of the listing requirements.
We anticipated 2003 to be a tougher year than 2002 but it turned out otherwise. As such we expect to perform much better this year,'' he said.
He added that as the company aggressively expanded its export base this year, including the foray into South Africa and Germany, export sales were expected to account for 50% of the company's revenue by the year-end from 30% currently and would subsequently have significant impact on the company's bottom line.
Pentamaster is an investment holding company with three subsidiaries, namely Pentamaster Engineering (M) Sdn Bhd, Pentamaster Precision (M) Sdn Bhd and Pentamaster Technology (M) Sdn Bhd, which are involved in the manufacturing of automated and semi-automated machine and equipment, designing and manufacturing of precision machinery components as well as design, assembly and installation of computerised automation systems and equipment respectively.
According to its prospectus, PMCB had forecast a slight drop in pre-tax profit this year after posting RM14.9mil pre-tax profit in 2002.
Chuah said provisions were made for the difficulties faced in 2001 with the anticipation that the trend would continue in the ensuing years.
I think things have become easier for us in 2003,'' he said.
He added that the company had earlier projected a 15% rise in turnover to over RM60mil this year from RM54.15mil last year, with growth mainly coming from exports. PMCB's flotation involves an initial public offering (IPO) of 12.34 million shares of 50 sen each at RM1.40 apiece by way of offer for sale.
Under the IPO, three million shares will be made available to the public and 2.468 million shares for private placement, while four million share are allocated for company directors and employees and 2.872 million share reserved for bumiputra investors and institutions.
Chuah also said the IPO would raise RM15.9mil, of which RM11.3mil would be spent on its third plant and machinery in Bayan Lepas, Penang.