Ni Hsin Resource Bhd expects its latest stainless steel kitchenware, to be launched next month, to contribute 10% of its projected revenue of RM50.8mil this year, said managing director Hsiao Chih Jen.
The company recorded revenue of RM38.25mil and net profit of RM7.51mil last year.
“The Malaysian market will be the first to be introduced to this product, followed by Japan, Europe and Taiwan.
“Malaysia was chosen for the product debut because our plant is in Balakong, Selangor,” Hsiao said after Ni Hsin's listing ceremony on Bursa Malaysia second board in Kuala Lumpur yesterday.
The company, which produces stainless steel kitchenware and cookware under Buffalo brand, also plans to strengthen its position in the local market this year.
Hsiao said the main strategy to reinforce its presence locally was through Everpo Sdn Bhd, the company's sole distributor in Malaysia.
Ni Hsin would also promote its cookware and kitchenware via its 10,000 dealers locally.
The Malaysian market contributed 2% to Ni Hsin’s turnover last year. “We are confident of increasing our sales to 5% by year-end, buoyed by the soon-to-be-launched product,” he said.
Ni Hsin shares opened at 34 sen for one sen premium over the issue price of 33 sen.
The counter touched a high of 44 sen and a low of 34 sen, and closed at 38.5 sen on total volume of 36.5 million shares.
The company's plan after the listing is to use RM3.6mil raised from the exercise to improve and expand its research and development facilities at the Balakong plant.
The listing raised total proceeds of RM7.4mil, of which the balance RM3.8mil would be used as working capital and for listing expenses.
Ni Hsin also plans to export its stainless steel products to the Middle East over the next two years.
“We already have some potential buyers in the Middle East. Therefore, we are confident of our expansion plan into that market,” added Hsiao.