New Hoong Fatt targets 70% revenue contribution from overseas by 2021

PETALING JAYA: Automotive replacement parts manufacturer New Hoong Fatt Holdings Bhd aims to increase revenue contribution from its markets abroad to 70% by 2021.

New Hoong Fatt’s overseas market revenue contributions for financial year 2016 (FY16) stood at 52.4%, of which about a third of it came from Asean.

Its managing director Chin Jit Sin identified Asean as the key market which will propel the company towards achieving its target.

“This is backed by our continuous efforts in expanding our product range as well as expanding the distribution coverage,” he said.

Last year, Thailand and Indonesia emerged as key contributors from the Asean region. Indonesia in particular is seen as a driver for growth going forward due to its market size as a populous country, and the potential number of vehicles sales it could bring.

The company achieved a record year in terms of earnings last year, with revenue going up by 11.9% to RM231.9 million from RM207.2 million. In line with that, its net profit rose by 55.8% to RM30 million for the year from RM19.3 million.

Chin said going forward the company is in a “comfortable” position as exports of its products and imports of materials for manufacturing parts are transacted in US dollars.

On repeating its double digit earnings growth this year, Chin said he is cautiously optimistic owing to the uncertainties surrounding the currency and the world economy.

This year, the company will be allotting a capital expenditure of RM30-35 million, which will be used for product development, to increase capacity in its plants and to buy and upgrade equipment.