YEW LEE PACIFIC DEBUTS ON ACE MARKET AT 28.5 SEN

KUALA LUMPUR, June 7 (Bernama) -- Industrial brush manufacturer and hardware and machinery parts trader Yew Lee Pacific Group Bhd (YLPG) made its debut on the ACE Market today at 28.5 sen, a premium of half a sen over its initial public offering (IPO) price of 28 sen.

At the opening bell, the counter saw 22.69 million shares changing hands.

Chief operating officer and executive director Ang Poh Yee said the expected gross proceeds of about RM37 million from the IPO would be utilised to buy more advanced machineries to upgrade its capabilities and produce more diverse products for other business segments, including semiconductor, wood manufacturing and glass manufacturing. 

"Moving forward, the fluctuation in raw material prices early this year will be a challenge for us to control, but we see the prices are stabilising in the second quarter (Q2),” she said.

She said following the increase in the minimum labour wage, YLPG hopes to reduce overhead costs after acquiring the new advanced machines.

"Therefore, we project to see an improvement in our profit margins for the financial year ending (FYE) this year," she said at a virtual press conference after the listing ceremony today.

On the expansion of YLPG’s overseas operations, Ang said the group plans to expand in its current operations in Thailand and Indonesia by focusing on sales and trading first before venturing into the manufacturing operations in both countries. 

For FY2021, the Perak-based group noted that in terms of its geographical revenue, Malaysia accounted for 76.8 per cent, followed by Thailand (7.0 per cent), Vietnam and Taiwan (5.8 per cent respectively), Indonesia (3.3 per cent), and others (1.3 per cent). 

For the same period, 85.4 per cent of its revenue was generated from rubber glove manufacturers.

Its customers include Top Glove Corporation Bhd, Precious Mountain Enterprise (Taiwan), Careplus Group Bhd, Latexx Manufacturing Sdn Bhd, and Hartalega Group.

-- BERNAMA