ECOFUTURE Bhd ended its debut trading day on the Mesdaq market yesterday with 10.5 sen gain against its initial public offering (IPO) price of 25 sen on volume of 28.2 million shares, after opening 15 sen higher at 40 sen. The share price touched an intraday high of 50 sen.
The oil palm biomass technologist expected an annual growth of 70% in net profit for the next three years, following expansion plans for biomass products, independent director Bryan Wong Wye Pong told reporters after the company's listing ceremony in Kuala Lumpur .
The remaining 30% would be generated by the milling business, he added. The gross margin for biomass products is about 60%-70%.
For the financial year ended December 2003, EcoFuture registered a net profit of RM2.05mil on the back of RM81.44mil turnover.
Managing director Yeo Kim Luang said EcoFuture planned to invest RM25mil-RM30mil in a new plant to make pulp from oil palm empty fruit bunches. The investment would be mainly funded by bank borrowings.
The new pulp-making factory in Johor, which is expected to be completed by the end of this year, will start production by March 2006. EcoFuture has started talks with several local paper manufacturers to sell them the pulp.
Additionally, RM6mil from the RM10.9mil listing proceeds would be used for the packaging material manufacturing plant in Segamat to increase production capacity by 50%, Yeo said.
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