DPI acquires new fully-automated filling line to expand capacity

KUALA LUMPUR: Aerosol paints producer DPI Holdings Bhd (DPI) has acquired a new fullyautomated aerosol filling line for its existing plant, thus increasing capacity to meet rising market demand.

The new RM0.45 million aerosol filling line is currently undergoing installation and trial runs, and is expected to begin operations in the next few months. The group’s production capacity is set to increase from 9.7 million cans currently.

DPI executive chairman and managing director Peter Chai said: “This is part of the planned upgrade in our existing factory, where we are enhancing our three semiautomated filling lines to become fully automated, to achieve faster output and higher capacity.

“The other two semi-automated lines are targeted to be upgraded and installed in the following 24 months.

“At the same time, we are intensifying our advertising and social media marketing plans to have a wider reach to potential customers.Altogether,weanticipate for our improved operations and enhanced marketing efforts to contribute positively to our future earnings.”

The group also intends to construct a new factory with four new fully-automated aerosol filling lines. Barring unforeseen circumstances, production in the new factory is set to commence in the first half of 2020.

For the first half ended November 30, 2018 (1H19), the group’s revenue rose three per cent to RM25.6 million, from RM24.9 million in the first half ended November 30, 2017 (1H18).

The revenue increase was mainly due to increase in sales of aerosol products, solvents and thinners, stemming from new local customers secured in the current financial period.

The group’s net profit stood at RM3.4 million during 1H19, which included a one-off listing expense of RM0.4 million. In comparison, the Group’s net profit in 1H18 was RM11.6 million, which comprised a one-off gain from disposal of fixed assets of RM8 million.

After adjustment of one-off items, the Group’s core net profit increased by 5.1 per cent to RM3.8 million, from RM3.6 million previously.

DPI is scheduled to be listed on the ACE Market of Bursa Malaysia on January 7, 2019. The group received encouraging response for its Initial Public Offering, with its public tranche oversubscribed by 23.0 times.

Affin Hwang Investment Bank Bhdistheprincipaladviser,sponsor, underwriter and placement agent for the IPO exercise.