Guan Chong Bhd plans to invest RM10mil in the US and Eastern Europe this year, said managing director Brandon Tay.
“As our focus now is to continue expanding overseas, we plan to invest RM5mil in the US and another RM5mil in Eastern Europe this year,” he said at the listing ceremony of the company on the Bursa Malaysia main board in Kuala Lumpur yesterday.
“This investment will be used to set up marketing offices in the US and to build a cocoa grinding plant in either Germany or Poland,” said Tay.
“I am confident of growing our existing US market and penetrating new Eastern Europe markets as there are only a few suppliers of cocoa products. Customers buying from these suppliers are constantly encouraging new smaller companies like us,” he said.
Guan Chong's listing involved a public issue of 24 million ordinary new shares and an offer for sale of 66 million ordinary shares at an issue price of 65 sen. Its share price opened at 70 sen and closed at 65 sen, on a volume of 13.9 million shares. Guan Chong was the second most actively traded counter for the day.
The company also plans to increase production of cocoa powder. “There is an global shortage of cocoa powder. Hence cocoa powder will be our primary product,” Tay said.
Guan Chong currently produces cocoa mass, cocoa butter, cocoa cake and cocoa powder under the Favorich brand.
These products are sold to international trading companies and multinational corporations.
For the 10-month financial period ended Oct 31, 2004, revenue was RM274.6mil and net profit at RM11.8mil.
These figures have been increasing steadily from RM220.3mil in financial year (FY) ending Dec 31, 2002 to RM370.9mil in FY2003.
The company has targeted revenue of RM394.7mil for this year.
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