Delloyd ... Mar10

Its net earnings increased 65% to RM33.93mil for the year ended December 2009. Notably, this was supported by its plantation business, which has been growing substantially in the last few years.

While Delloyd expects its Malaysian core business of auto parts manufacturing to ride on the industry’s uptrend, it sees more potential in its Indonesian venture. Since setting up production facilities in Indonesia several years ago, the group has been a vendor for Toyota and in 2009, it started supplying Honda parts.

Over the next five years, Delloyd will supply auto parts for some 150,000 Honda cars, which is likely to translate into revenue of RM6mil per year.

Since 2008, the company has also been building chassis for buses in Indonesia in a collaboration with a German chassis designer.

Delloyd’s 51% bus-assembly subsidiary, PT Asian Auto International, has submitted a tender bid to build buses for Transjakarta Busway, a bus rapid transit system. The outcome is due next month. Expecting this segment to be a new revenue stream for Delloyd and provide a larger contribution, moving forward.

Delloyd’s plantation business has grown substantially since 2006 when it purchased a 60% stake in an Indonesian plantation company for about RM43mil. In 2009, the company’s plantation unit contributed 15.3% of total revenue. In 2010, the percentage is almost certain to rise as the company forecasts fresh fruit bunch (FFB) production to grow by almost 25%.

Revenue from Delloyd’s Indonesian operations will probably overtake that of Malaysia in the next five years. Malaysia currently contributes 75%.