GUH expected to return to the black

  • Corporate News
  • Monday, 14 Oct 2019

GUH Holdings Bhd CEO Datuk Kenneth H'ng showing a multi-layered printed circuit board. - CHIN CHENG YEANG/The Star (filepic)

GEORGE TOWN: GUH Holdings Bhd expects to return to the black in this 2019 financial year after two consecutive years of losses, driven by the surge in the global demand for printed circuit boards (PCBs).

Group managing director Datuk Seri Kenneth H’ng told StarBiz that the group’s results would improve this financial year because it had already registered an RM4.2mil after-tax profit for the half-year of 2019.

In the 2017 and 2018 financial years, the group registered respective after-tax losses of RM7mil and RM2.8mil

“Based on customers’ feedback, we expect to deliver from our plants in Suzhou and Penang more than RM140mil worth of PCBs in the second half of 2019, which is about 5% more than a year ago same period, ” H’ng said.

According to H’ng, the demand for double-sided and multi-layered PCBs has increased.

“The global PCB market is expected to reach an estimated US$89.7bil by 2024 with a compounded annual growth rate of 4.3% from 2019 to 2024, according to a Research and Markets report.

“The prospects of our PCB segment look promising as a new generation of energy-savings household appliances is coming into the market.

“Asia Pacific is expected to remain the largest market and witness the highest growth over the forecast period due to the increasing electronic content in automotive, and growth in consumer electronic devices and telecommunication products, ” he said.

The sales of PCBs to multi-national corporations (MNCs) in Malaysia improved by about 10% in the first six months of the 2019 fiscal year over the same period a year ago.

“According to Statista, the German online portal for statistics, the revenue of household appliances in Malaysia is expected to hit US$159mil in 2019, registering a compounded annual growth rate of 10.8% for the 2019-2023 period.

“Our PCB sales in the country has been improving steadily since 2017, and the sales are expected to be strongest this year, ” he added.

GUH makes PCBs that are used in Japanese and Korean-made consumer electronic appliances such as televisions, washing machines and refrigerators.

According to the report, the future of the PCB market looks promising with opportunities in the computer/peripherals, communications, consumer electronics, industrial, automotive, and military/aerospace industries.

“The major growth drivers for this market are increasing demand for PCBs in the communication industry, growth in connected devices, and advancement in automotive electronics.

“Emerging trends, which have a direct impact on the dynamics of the PCB industry, include miniaturisation of printed circuit boards, growing demand for high-speed data and signal transmission, and development of green PCBs, ” the report added.

H’ng said the group was now fine-tuning its master plan for its RM500mil mixed-development project on a 46-acre site in Simpang Ampat town.

“We are revising the design of the commercial and residential properties for the project, ” he added

H’ng added that the group aimed to launch the project into years.

“We have recently partnered with QSR Brands (M) Holdings to develop the first KFC drive-thru restaurant for the proposed mixed-development project, which will increase its appeal, ” he said.

H’ng was recently nominated for the Ernst & Young Entrepreneur of The Year 2019 award under the Master Entrepreneur category.

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