Amlex eyes capacity expansion

KUALA LUMPUR: Amlex Holdings Bhd, which made its debut on Bursa Malaysia’s Leap market yesterday, looks to raise its capacity in the automotive and LED industry.

Co-founder and managing director Lim Say Soon said the company’s production flow is seriously undercapped and it needed to bring in more machineries to increase volume expansion. “Our capacity is a constraint. We plan to bring in more big machinery for the expansion.

“Our strategy is to expand vertically by specialising [in the LED light and automotive market] and to keep pace with other Malaysian-based foreign companies,” Lim said after a press conference after the listing ceremony,

Amlex provides electronic packaging and interconnect solutions for the semiconductor and electronics industry. It hopes to ride on the strong growth especially with the greater usage of electronics in cars. According to Lim, the company is currently collaborating with a U.S producer to mass produce LED lights for high end cars. “Our aim is to become a one stop centre and add more value into our parts.”

He said the company will be investing RM300,000 to build a new in-house designed rack plating machine.

The machine is estimated to have a plating capacity of 400,000 units/pieces per month.

From the listing exercise Amlex raised RM6.03 million of 40.2 million shares at 15 sen via a private placement to investors. Of the total proceeds raised, 53% will be utilised for capital expenditure, 17.1% for general working capital requirements, 13.3% for research and development, while the remaining 16.6% will be used for the listing expenses. The group posted a net profit of RM2.2mil with revenue of RM39.3mil for the end of its financial year on March 31, 2018.

The stock opened yesterday at 15.5 sen and closed the day at up 10 sen, or 6.67%, at 16 sen.