Thong Guan Industries Bhd, one of the leading stretch-film players, which has announced its second quarter results for the financial year ending 31 December 2017 (Q2FYE2017), reported that it has steadily increased its revenue.
For the quarter under review, the increase in revenue was contributed from the increase in sales volume of the plastic product which was mainly derived from export sales. The Group’s gross profit margins also rose due to its export sales of premium stretch films, PVC food wrap and industrial bags.
Despite the decrease in profits as reported, the Group’s core profits remain intact. The decrease was due to a RM2.02 million once off gain from disposal of machinery during Q2FYE2016.
The Group’s plastic products division remains as the largest contributor contributing more than 93% of the Group’s revenue.
As at 30 June 2017, Thong Guan’s balance sheet remained robust with a net cash position of RM62.1 million and a current ratio of 3.15 times.
Commenting on the financial results, Thong Guan’s Executive Director, Mr. Alvin Ang said, “Thong Guan is confident that our double-digit growth in sales thus far will continue to deliver positive earnings to the Group. With that said, we are in the midst of commissioning our second nano layer stretch film line and 8th PVC food wrap line which will further increase our production capacity. The Group believes in delivering value, our newly formulated nano films are designed, tested and proven through our Newton R&D Centre which is the 1st Dynamic Stimulation Lab in Asia Pacific.”
“More recently, the Group has launch our new restaurant business under the Marché Mövenpick franchise which is expected to contribute positively to the Group’s financials.”