Thursday, February 10, 2011

RESINTC ... Feb11

Polyvinyl chloride (PVC) and polyethylene products maker Resintech Bhd entered Cambodia three years ago to expand the export of its plastic pipes and fittings. The company initially intended to plant rubber trees there as a means to diversify its business but interestingly, it ended up with the pizza business instead.

Amazed by the locals’ love for pizza in the former French colony, it sought out Sarpino’s World Pte Ltd, a Canadian pizza franchise with more than 100 franchise outlets in over 14 countries, and in August 2010 signed a 10-year master franchise agreement to operate Sarpino’s Pizzeria in Cambodia.

It expects the four outlets to contribute about RM1 million to Resintech’s bottom line from FY12 ending Feb 28 onwards, as the business capitalises on the popularity of pizza in Phnom Penh city, which has a population of 1.5 million.

Resintech is looking at securing the franchise rights for east Malaysia, Batam in Indonesia and Brunei.

Resintech exports its PVC products to Indonesia, Cambodia, Sri Lanka, Australia and the Middle East.

Meanwhile, Resintech has no plans to abandon its core business, but sees the food franchise as a supplementary contributor to its bottom line.

For the 6MFY11, Resintech saw its net profit rise 31.5% to RM2.66 million or 2.71 sen per share from a year earlier, on the back of RM46.2 million in revenue. The increase in net profit was due to lower cost of sales. Its net asset per share also improved to 80 sen from 73 sen a year earlier.

Established in 1977, Resintech is a manufacturer of various PVC and polyethylene products. It was listed on Bursa Malaysia’s Second Board in 2006 before moving to the Main Market in early 2010.

It has five factories in Klang, Kota Kinabalu and Kuching that manufacture and supply products such as PVC pipes, fittings, rain gutters and septic tanks. Its main customers include those in the water treatment, water supply and gas industries.


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