K-One riding high on GPS technology

  • Business
  • Monday, 17 Nov 2008

It is poised to tap its potential in the country and overseas>

THERE is much potential in the global positioning system (GPS) market, both in Malaysia and overseas, says a Mesdaq-listed technology player.

K-One Technology Bhd group chairman Edwin Lim Beng Fook said from the estimated 10 million passenger cars in Malaysia, only 3% was equipped with GPS technology.

Of the estimated 250 million passenger cars in Asia, only 2% to 3% have GPS sets. The number of GPS gadgets is anticipated to increase to 110 million units worldwide by 2012 from an estimated 60 million units this year.

K-One provides integrated technology solutions including design and development, prototyping, tooling and manufacturing.

Its niche is in mobile phone accessories, computer peripherals and consumer technology products.

Martin Lim (left) and group chairman Edwin Lim at the launch of K-One N870 GPS navigator

In August, it launched its first own branded product, K-One N870 GPS navigator unit.

“K-One N870 is aimed at helping Malaysian drivers save fuel, time and money; promote safety in driving, provide stress-free travelling as well as ensure they arrive at their destination on time and with ease,” Lim said.

It is pre-loaded with maps of Malaysia and Singapore as well as 200 cities in the world.

“Before the end of this year, we will be launching another two models of K-One’s GPS navigator, which have slightly different features and functions, to cater to the different market segments,” Lim said.

The N870 GPS has a smart and high performance antenna that provides better satellite signal reception, Bluetooth capability and a rear view camera to prevent accident when reversing the vehicle.

Plans are also underway to expand the market for K-One’s GPS navigators to Asia, Europe, North America and Oceania countries, Lim said, adding that marketing offices were set up in China and Australia.

K-One is also in the final stage of developing its second own brand product; this time in the computer business segment, which it expects to launch by end of next month.

In a filing with Bursa Malaysia, K-One said worldwide sales of mobile phones were expected to grow by 11% to 1.3 billion units this year against 1.2 billion in 2007.

Mobile phone accessories and consumer technology products were anticipated to contribute over 70% of turnover to K-One in the next two years, Lim added.

Meanwhile, the development of its own product line is a long-term strategy to cushion its design and manufacturing outsourcing business.

Lim said the group’s future would be “more assured” with two revenue streams - design and manufacturing outsourcing; and development of own brand products.

K-One has remained profitable since its incorporation in 2001 with compounded annual growth rate of 55% in the past five years.

For the first six months ended June 30, it made a net profit of RM2.1mil on revenue of RM26.2mil.

“The majority of our customers are multinationals who have been with us for a long time, most of them since 2001,” Lim said, adding that payments had always been prompt and were unlikely to deteriorate.

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