Pelangi aims to double contribution from exports


  • Business
  • Saturday, 24 Apr 2004

Pelangi Publishing Group Bhd expects exports to account for 10% of group turnover in three years, compared with 5% now, said managing director Samuel Sum Kown Cheek. 

“We intend to expand our market internationally by forming partnerships with publishers in China and Thailand later in the year,” he said, adding that competition in the local market was stiff, especially for educational books. 

“In the future, more partnerships will be formed with publishers in other countries,” he said in Kuala Lumpur after the company's listing on the second board of Bursa Malaysia yesterday. 

Samuel Sum Kown Cheek pointing to how the company's shares were faring. With him is Ng Jit Sing.

Pelangi signed, two months ago, a 60:40 joint venture with PT Pelangi Mentari Indonesia and expects to start publishing there in six to nine months. It has invested RM500,000 to set up base in Indonesia. 

In the first-day trading yesterday, Pelangi shares opened at 96 sen for a 28% or 21 sen premium over the initial public offering price of 75 sen. The counter hit an intra-day high of RM1 before closing at 89 sen on volume of 15.73 million shares. 

Sum said he was quite satisfied with the opening premium. 

The Johor-based company publishes and prints educational and children's books, and multimedia educational products. 

Pelangi's head of corporate affairs Ng Jit Sing said the company had started an e-Library and educational CD-ROM to increase its market share. He said the company would also set up a website and participate in more book fairs to sustain its business. 

Pelangi currently has a 28% share of the local market for reference and children's books. 

Ng said Pelangi's participation in overseas book fairs had led to partnerships with many renowned international publishers and authors like Walt Disney, JK Rowling, DK and DC Comics to translate and publish their books in Malaysia. 

Pelangi's books and copyrights are also sold to publishers in the Philippines, Singapore, Hong Kong, South Korea and other countries. 

“Pelangi books are also translated into many foreign languages and sold internationally. These will substantially increase our sale of rights and books overseas as well as give us more co-printing jobs which means taking our titles to print over there,” Ng said. 

For the current fiscal year ending Sept 30, Pelangi has targeted pre-tax profit of RM10.98mil, net profit of RM6.72mil, and turnover of RM63.33mil. 

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