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Falling Resin Price, Weak Ringgit Boosts SLP Earnings To Record High
Malaysia Daily Bulletin | 09 November 2015
  • Plastic packaging manufacturer, SLP Resources, is benefitting from the weak Malaysian ringgit as well as the drop in prices of raw materials, in particular resin, which has helped boosted earnings to a record RM9.4 million in 3Q15, up almost 200 percent year-on-year.
  • The company is said to record 56 percent of its sales in US dollar and has been shifting its focus to the export market, as it ramps up production in anticipation of stronger demand, particularly from overseas clients.
  • Lower cost of raw materials, especially resin (constitutes 46 percent of production cost) has allowed the group to lower the average selling prices for its products, to better compete in the market.
  • Armed with RM23 million in cash, SLP intends to establish a new RM25 million manufacturing facility adjacent to its present plant in Kulim, which will house seven new production lines that will raise its annual output to 38,000 tonnes in two to three years from 24,000 tonnes now.

Significance: On the back of the good performance, the group has declared a special interim dividend of RM0.015. Looking ahead, the group is confident of its performance in the last quarter of 2015, underpinned by new and existing orders, and is targeting expansion into the Chinese market in 2016.

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