New plant to boost Mikro output

INDUSTRI Teknologi Mikro Bhd (Mikro), a manufacturer of electronic protective relays for industrial and commercial applications, has allocated RM3.5mil for plant expansion to triple the value of its production to RM3mil from RM1mil currently, said managing director Yim Yuen Wah. 

“We will be investing RM3.5mil to acquire a piece of land and a factory building, which is expected to be completed in 2008,” he said. 

“We have identified a few places in Shah Alam and Kota Kemuning for the new factory but we have yet to decide on the location,” he said after the company's listing on the Mesdaq market of Bursa Malaysia yesterday.  

Mikro currently has a manufacturing facility in Shah Alam. It plans to double its assembly line to two. Its existing production line produces a monthly value of up to RM1mil. 

Mikro shares opened at 33 sen, 11 sen above their initial public offer price of 22 sen. 

The counter touched a high of 35 sen and a low of 24 sen before closing at 25.5 sen on the day's heaviest volume of 29.56 million shares. 

“This listing status gave us a platform to establisha brand name and differentiates us from the two other local players through our technical expertise and competitive pricing,” Yim said. 

The company has also allocated RM3.5mil for research and development over three years. 

Yim said the group intended to tap the Middle East and Philippine markets, and expand in China next year.  

Mikro already has businesses in Vietnam, Indonesia, Thailand, Bangladesh, Singapore and China (Zhuhai). 

He said the group expected to boost its overseas contribution to 33% of total revenue for the fiscal year ending June 30, 2006. 

The overseas business contributed 14% to group earnings in the last financial year. 

For the financial year ended June 30, the company recorded a net profit of RM2.17mil on turnover of RM8.22mil. 

“We forecast a 54.5% growth in revenue to RM12.7mil for the current year and a net profit to increase to RM3mil,” Yim added.