Goh Ban Huat eyes overseas markets
> Group looking to supply sanitaryware, tableware to property development projects in foreign countries
PETALING JAYA: Goh Ban Huat Bhd (GBH), which is cautious on its earnings outlook, is exploring options to grow its sanitaryware and tableware trading segment beyond the domestic market.
“We are exploring some countries which we think we have some competitive edge, like Vietnam,” said group executive director David Lai at a media briefing held after its AGM yesterday.
Lai said the group is looking to supply its sanitaryware products to projects undertaken by local developers overseas.
“I think it will be a good platform for us to set base and see if we can sell beyond Malaysian developers,” he added.
On GBH’s financial outlook, Lai said the challenge lies in the form of a soft property market.
“We are working on the numbers, you know it’s a big challenge because of the softening market on the property side. Selling this kind of product is actually exposing us in terms of credit, so we are quite careful in terms of our exposure,” he added.
GBH had exited its clay pipes manufacturing business in financial year 2016 following the expiration and termination of the tenancy of its operations plant. The division had been contributing significantly to the group’s revenue but this is currently being offset by revenue from the trading segment.
For the first quarter ended June 30, 2017, the group returned to the black, registering a net profit of RM445,000 against a net loss of RM715,000 in the same period a year ago. Revenue, however, more than halved to RM4.79 million from RM13.25 million.
As for the full year ended March 31, 2017 the group saw an improvement in net profit to RM1.88 million from RM244,000 recorded in the previous year. Its revenue declined by 29.58% to RM37.35 million from RM53.04 million.
GBH trades sanitaryware and tableware under its own brand and the Kohler brand – a sanitaryware brand for which it serves as a distributor. The products are sourced from China.
With cash and cash equivalents of RM152.73 million as at June 30, GBH is looking to deploy the cash pile to diversify into new businesses and to grow its trading segment.
Last month, the group announced the proposed acquisition of a plot of land from Puncak Melati Sdn Bhd for RM39.52 million, which the group deemed as being below market price.
While there are no immediate development plans for the land located in Mont Kiara, it is open to selling the asset when there is demand and improvement in market conditions.