Asia File has potential to capture more market share

PETALING JAYA: Asia File Corp Bhd’s operating outlook will be supported by higher eCommerce sales for consumer and food ware products as well as improved margins due to better production efficiency.

MIDF Research is however cautiously optimistic demand for filing goods to remain subdued due to digital transformation and environmental concerns, leading to lower usage of traditional physical filing products globally.

“This presents an opportunity as it could result in the exit of small scale competitors, enabling the group to potentially capture more market share in Malaysia.

“Notably, Asia File currently holds 70% market share for filing suppliers in Malaysia.

“This is attributed to its economies of scale and lower unit costs, allowing the group to offer competitive prices,” MIDF Research said in a report yesterday, following a virtual meeting with the company’s management.

Moreover, the research house said Asia File intends to enter eCommerce platforms in the United Kingdom and Germany.

“This departure from traditional marketplaces allows the organisation to reach out to individual clients directly and build its own brand,” MIDF Research said.

The research outfit projects an uptick in December 2023 sales on eCommerce platforms, underpinned by year-end sales.

This is despite consumer sentiment for consumer goods remaining sluggish in traditional commerce.

“Recall that Asia File markets its consumer goods under the flagship brand, ABBAWARE. This brand offers premium quality and competitive pricing to end-users via online platforms like Shopee and Lazada in Malaysia.

“The group also aims to expand the market share of consumer wares to 40% in the mid-to-long term from the current one third market share,” MIDF Research said.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Goldman Sachs' profit jumps 28% on investment banking strength
Tesla to lay off more than 10% of staff globally as sales fall
EPMB and BAIC ink 10-year vehicle assembly agreement
SCIB and Awana sign new agreement, securing exclusive contract for PPAM Mualim Project
Ringgit closes lower against greenback
Eduspec appoints Kang Pang Kiang as deputy chairman
HeiTech Padu wins RM190mil MySikap contract from JPJ
RHB invests RM3.8mil in Boost Bank, maintains 40% stake
GCAP inks MoU for Pahang hydropower project
GIP said to halt plan to buy stake in MMC Port

Others Also Read