Furniture maker TAFI Industries Bhd is looking at securing up to RM25 million of jobs in 2011 from furnishing educational institutions and corporate customers in the Klang Valley, Iskandar Johor and Singapore.
60% of the company’s revenue is derived from exporting OEM furniture to 50 countries, with another 35% from sales of standard products and 5% from selling furniture directly to corporate customers.
Due to the economic crisis in 2008, local furniture makers saw their profit margins squeezed due to the weakening US dollar and a drop in orders from overseas markets.
While some companies fell into the red during that period, TAFI managed to stay in the black although earnings fell.
For FY09 ended Dec 31, TAFI saw its net profit fall to RM960,876 from RM5.1 million a year earlier. Revenue fell 42.7% to RM35.6 million from RM62.1 million. For FY10, TAFI managed to improve its net profit marginally to RM1.1 million on the back of RM39.78 million in revenue.
Saw owns a 3.89% stake in TAFI. The company’s major shareholders are Terk Yew Tee (25.53%), Saw Han Lim (20.31%) and Lembaga Tabung Haji (15.11%).
It net assets per share stood at 77 sen as at December 2010. The company has cash and equivalents of RM19.06 million comprising RM18.1 million in cash and RM950,000 in bonds, with no borrowings. The cash and equivalents translate into a significant 24.5 sen per share, or 78%, of TAFI’s current share price (10 March 2011).
This implies the company’s other operating assets are being priced by the market at only seven sen per share or RM5.44 million. These include plant, machinery and properties with a total book value of RM31.96 million and RM9.52 million in inventories.
60% of the company’s revenue is derived from exporting OEM furniture to 50 countries, with another 35% from sales of standard products and 5% from selling furniture directly to corporate customers.
Due to the economic crisis in 2008, local furniture makers saw their profit margins squeezed due to the weakening US dollar and a drop in orders from overseas markets.
While some companies fell into the red during that period, TAFI managed to stay in the black although earnings fell.
For FY09 ended Dec 31, TAFI saw its net profit fall to RM960,876 from RM5.1 million a year earlier. Revenue fell 42.7% to RM35.6 million from RM62.1 million. For FY10, TAFI managed to improve its net profit marginally to RM1.1 million on the back of RM39.78 million in revenue.
Saw owns a 3.89% stake in TAFI. The company’s major shareholders are Terk Yew Tee (25.53%), Saw Han Lim (20.31%) and Lembaga Tabung Haji (15.11%).
It net assets per share stood at 77 sen as at December 2010. The company has cash and equivalents of RM19.06 million comprising RM18.1 million in cash and RM950,000 in bonds, with no borrowings. The cash and equivalents translate into a significant 24.5 sen per share, or 78%, of TAFI’s current share price (10 March 2011).
This implies the company’s other operating assets are being priced by the market at only seven sen per share or RM5.44 million. These include plant, machinery and properties with a total book value of RM31.96 million and RM9.52 million in inventories.
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