SUBANG JAYA: Can-One Bhd sees demand for its tin products growing in tandem with the surge in palm oil export, said executive director and chief operating officer Chee Khay Leong.
He said the group had experienced good growth for its cans due to the high demand for palm oil.
Can-One, which is one of the largest manufacturers of tin cans for the local edible oil industry, has about 70% market share.
“Most of our customers have been with us for more than 20 years and our major clients for edible oil cans include Felda,” he said after the company AGM yesterday.
To a question, he said Can-One was not too worried about the rising cost of raw materials, as the company could pass some of it to customers.
“We are working on the price increase.
“Our consumers generally understand the high oil price issue, raw material prices and additional production cost such as for electricity but we have to create a win-win situation for all parties,” Chee said.
He added that the price of tin had increased 30% to 40% over the past 12 months and was expected to rise further.
On competition, he said challenges and opportunities were found in every business.
“In our industry, everyone is facing the same problem. We just have to stand out and do our best to remain ahead of the competition,” Chee said.
Apart from edible oil, Can-One also manufactures tin cans and jerry cans for cereal, milk powder, biscuits, coffee powder, chemicals and paint.
Executive director Ooi Teik Huat expected the group to continue its positive growth for the financial year ending Dec 31, based on its first-quarter results.
The company charted 56.3% jump in revenue to RM75.5mil for the three months ended March 31. However, net profit was slightly lower at RM1.55mil compared with RM1.59mil previously.
“We will continue to focus on our general can business and consolidate our food business this year. Going forward, we will try to defend our profit quantum,” Ooi said.