Jadi Imaging ... May 2008

What’s NEXT!

Jadi Imaging Holdings Bhd, a manufacturer of toners, is expected to spend some RM20mil as capital expenditure in 2008, which would go towards the setting up of sales and distributorship in the United States and Europe. The group would also add another line for colour toner production, which is expected to start operation by July 2008.

The group planned to strengthen its position by appointing distributors in Europe and the United States to increase its revenue and market share in those two markets.

For the financial year ended Dec 31, 2007 (FY07), the group exported its toners to 41 countries, the bulk of which went to Asia. The company also plans to increase its colour toner production in view of increasing demand since it started producing colour toner in late 2006.

For the whole of 2007 the group produced 3.5 tonnes of colour toner but in May 2008 it produced seven to eight tonnes of toner to cope with the rising demand.

The group may see a squeeze in profit margins owing to the depreciation of the greenback against the ringgit as most of its exports were earned in US dollars. Furthermore, the appreciation of the Japanese yen against the ringgit would also increase production costs as resin, the raw material to produce toner, is imported from Japan.

Nevertheless, the group hoped the increase in demand for colour toner would be able to mitigate these two effects on the group bottom's line in 2008.