KUALA LUMPUR: SKB Shutters Corp Bhd, which secured a RM43mil contract to supply automated storage system from a client in Vietnam, expects a recent business venture to drive the group’s earnings growth in the financial year ending June 30, 2017 (FY17).
The roller shutter and pallet racking system maker had ventured into the manufacturing of insulated fire shutter and insulated fire-rated steel door products.
“It will take at least 12 months to do the marketing. We have been promoting the product for the past six months and it will take another six months to complete the task,” group executive director Michelle Sin said.
She was speaking to reporters after signing an agreement with Asia Pangasius Co Ltd, a unit of Vietnam’s biggest cold room warehouse company Hund Vuong Corp to supply automated storage and retrieval system (ASRS).
It consists of a variety of computer-controlled systems to automatically place and retrieve loads, as well as the distribution of processed seafood for exports.
The facility’s expected storage would be at 60,000 tonnes upon completion.
The coldroom project is valued at RM66mil, where SKB bagged RM43mil while CycleWorld Corp Bhd secured RM23mil to design and install the coldroom.
The estimated time for the completion of the ASRS systems is one year from the signing of the contract.
“We are glad to have outbid international competitors in this tender which will also provide us a continuous learning and working experience with Hung Vuong,” Sin said.
SKB had established itself as one of the major players in the region in the business of roller shutter and pallet racking system.
Sin said the insulated fire shutter and door business offers huge growth potential for the company.
“SKB is determined to establish a competitive edge with the insulated fire-rated series to lift revenue in the roller shutter and steel door segment. SKB has also started initiating and tapping into retail customisation for both residential and commercial customers as tailor-made doors are often less in demand due to the complexity and effort required,” she added.
Besides the domestic market, the new products would also be promoted in Singapore.
The group would also strengthen its markets in Asean, South Asia, Middle East and Europe, Sin added.
“Asean and South Asia are the key markets for us,” she said.
Sin said the group expected the 2016 fiscal year to remain flat against the previous fiscal year. For the first quarter ended Sept 30, the group posted RM248,000 in pre-tax profit on the back of RM12.7mil revenue, compared with RM1.29mil and RM13.5mil respectively in the previous corresponding period.