Ewein aims for bigger presence abroad

KUALA LUMPUR: Sheet metal fabricator Ewein Bhd, slated for Bursa Malaysia second board listing this month, plans to grow its domestic market share and also gain a stronger presence overseas, especially India. 

Managing director Datuk Ewe Swee Kheng said currently the company held slightly over 5% of the local sheet metal fabrication market comprising about 300 players. 

“The objective of listing Ewein is to gain greater global recognition as a serious industry player,'' he told StarBiz after the launch of the company's prospectus and briefing for analysts yesterday.  

Ewe said the listing would enhance the 19-year-old company's profile and potentially help expand its local and foreign customer base with a stronger brand name.  

Datuk Ewe Swee Kheng

“Many of our existing customers are multinationals and we want to serve as many multinationals as possible within our operational means,” he said, adding that Ewein's integrated manufacturing plant in Penang was running at about 70% capacity. 

He said the company was poised for stronger growth as rising wealth in some emerging economies spurred the demand for electronic devices. “The main growth drivers for Ewein would be the consumer electronics and industrial electronic industries,” he said. 

On overseas expansion, Ewe said the company planned to venture into India's sheet metal fabrication market for digital satellite antennas and set-top boxes by year-end. 

“India has a huge population in the rural areas. We foresee strong demand for electronic products, especially households items, in the outskirts.”  

He said Ewein was also considering going into India's local automotive components market as that country's economic expansion which would fuel demand for automobiles, and indirectly car components. 

Currently, Ewein exports (directly and indirectly via multinationals) to Brazil, the United States, Hungary, Japan, Australia, Hong Kong, Singapore, Ireland, Canada and Thailand. 

The listing exercise involves an offer for sale of 25.11 million 50 sen shares at an offer price of 70 sen each to raise proceeds of RM17.58mil. 

MBM Resources Bhd, which owns 18.11 million shares in Ewein, is offering the shares to its shareholders under a restricted offer for sale.  

Hijauwasa Sdn Bhd, which owns seven million Ewein shares, is offering six million shares to the public and one million to eligible directors and employees. 

Ewe said the company had virtually no debts and had cash and cash equivalents totalling RM22.5mil. 

For the financial year ended Dec 31, 2007, Ewein posted a net profit of RM10mil on revenue of RM105mil. 

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