Friday, Dec 02, 2005
MARC has assigned rating of A+ID/MARC-2ID to Emas Kiara Industries Berhad’s (“EKIB”) Partially Underwritten Murabahah Notes Issuance Facility/Islamic Medium-Term Notes Issuance Facility (“MUNIF/IMTN”) Programme of up to nominal value of RM80 million. The rating assignment is a reflection of EKIB’s position as a leading market player in the geosynthetic products segment in Malaysia; the stable and foreseeable increase in demand for its products domestically and regionally; stable operating margins over the last three years and low debt leverage position. The rating, however, is moderated by the competition within the industry; end-users’ receptiveness to the products and the potential increase in the price of resin which is a polymer related product.
EKIB is principally an investment holding company listed on the Second Board of Bursa Malaysia Securities Berhad. Its subsidiary companies are involved in the manufacturing and trading of various types of geosynthetic and industrial textile products. In addition, its subsidiaries also provide design & installation services to customers.
Within a period of 10 years, EKIB has grown to be the domestic leader in the manufacturing of geosynthetic products. Its joint venture with a Korean partner in 2001 enables the Group to expand into upstream activities to undertake the manufacturing of polypropylene fibres which is the raw material used for the non-woven geotextiles and industrial textile products. Additionally, the acquisition of an industrial fabric manufacturing facility by Advance Technical Fabric Sdn Bhd, a subsidiary of EKIB and the equity interest in Innovative Industrial Textile Sdn Bhd by EKIB have allowed the group to penetrate the industrial textile products segment, where EKIB has ventured into the manufacturing and sales of industrial fabrics as well as industrial bulk containers catered for specific industry use.
Revenue growth has been on an upward trend over the past three years, a reflection of the group’s continuing growth in the industry. However, FY2004’s double-digit revenue growth has not led to better pre and post tax profits. The drop was primarily due to the increase in resin prices and higher expenses incurred for marketing and promotional activities to grow export sales which consequently led to higher operating costs. Going forward, EKIB expects to realise higher revenue contribution from the export market with emphasis in supplying geosynthetic and industrial products.
EKIB is principally an investment holding company listed on the Second Board of Bursa Malaysia Securities Berhad. Its subsidiary companies are involved in the manufacturing and trading of various types of geosynthetic and industrial textile products. In addition, its subsidiaries also provide design & installation services to customers.
Within a period of 10 years, EKIB has grown to be the domestic leader in the manufacturing of geosynthetic products. Its joint venture with a Korean partner in 2001 enables the Group to expand into upstream activities to undertake the manufacturing of polypropylene fibres which is the raw material used for the non-woven geotextiles and industrial textile products. Additionally, the acquisition of an industrial fabric manufacturing facility by Advance Technical Fabric Sdn Bhd, a subsidiary of EKIB and the equity interest in Innovative Industrial Textile Sdn Bhd by EKIB have allowed the group to penetrate the industrial textile products segment, where EKIB has ventured into the manufacturing and sales of industrial fabrics as well as industrial bulk containers catered for specific industry use.
Revenue growth has been on an upward trend over the past three years, a reflection of the group’s continuing growth in the industry. However, FY2004’s double-digit revenue growth has not led to better pre and post tax profits. The drop was primarily due to the increase in resin prices and higher expenses incurred for marketing and promotional activities to grow export sales which consequently led to higher operating costs. Going forward, EKIB expects to realise higher revenue contribution from the export market with emphasis in supplying geosynthetic and industrial products.