Seng Fong Holdings cautiously optimistic on growth

PETALING JAYA: Seng Fong Holdings Bhd remains cautiously optimistic about achieving sustainable growth in its operations while continuing to register good earnings for its financial year ended June 30, 2024 (FY24).

In a filing with Bursa Malaysia, the rubber processor said, in light of expectations that the US Federal Reserve will cut its interest rates, it will continue to be cautious when managing operations.

Seng Fong said it is hopeful the growth in electric vehicles in the United States and China will raise natural-rubber demand.

The group added it continued increasing its market share following the completion of increasing production hours in all three of its factories by adding a second working shift, thus increasing its production hours from 12 hours a day, to 18.

“Our total annual capacity is expected to expand to approximately 190,000 tonnes in FY24 compared with approximately 166,000 tonnes in FY23,” it said.

With the “smart rubber manufacturing equipment” in its three factories set to automate its manufacturing process, the group will utilise about RM23.4mil of the total proceeds raised from a proposed private placement to part fund it.

“The system which adopts intelligent technology, automates existing processing lines with digital control, and the use of robotic arms and automated guided vehicles that allow reduction in manual labour, enhancing quality assurance and product consistency,” the company said.

Seng Fong said for the third quarter ended March 31, 2024 (3Q24), it registered higher revenue of RM300.3mil compared with RM287.6mil in the second quarter of FY24.