Security seal manufacturer Mega Fortris Bhd group managing director cum group chief executive officer Datuk Adrian Ng Meng Poh said the groups' presence will be further enhanced via listing on the Main Market of Bursa Malaysia. —Low Boon Tat / The Star
KUALA LUMPUR: Mega Fortris Bhd, a newly-listed security seals manufacturer on the Main Market of Bursa Malaysia, remains optimistic on its future earnings prospects with an expectation of better top line growth, as well as stronger profit after tax.
Group managing director cum group chief executive officer Datuk Adrian Ng Meng Poh said this is considering the group’s strong presence worldwide, coupled with the title of being a listed company and its expansion plans in the United Kingdom.
“We have a very strong presence in Europe and the United Kingdom, and we are able to invest in the United Kingdom to open a new factory. So, the listing will further enhance that presence worldwide,” he told the media after a listing ceremony here, yesterday.
Elaborating further, chief operating officer Jason Francis White said with the new production facility in the United Kingdom, Mega Fortris aims to increase its production by 200 million units annually.
This will be on top of the current annual capacity of about 570 million units in Malaysia, in which he said the capacity expansion is not a significant concern.
“We are able to rapidly increase capacity within a very short time frame, anywhere from 30 to 100 days.
“We can significantly increase capacity by implementing new mould technologies, as well as by using vetted subcontract original equipment manufacturers,” he said.
Separately, the group highlighted its long-standing support for its United States operations, in which Mega Fortris was said to have successfully navigated multi-jurisdictional taxes and regulations in both the United States and Europe.
Ng said despite previous tariff hikes imposed by former and now current US President Donald Trump, the company views these as manageable challenges.
“We do not see it as a problem because this is business as usual and the impact is minimal,” he said, adding that the company would respond with a multi-pronged approach instead.
“If necessary, we will increase our average selling price.
“Additionally, we plan to decentralise operations, with the eventual goal of establishing a facility in the United States, which will help mitigate the impact of any future tariffs,” he added.
Mega Fortris made a flat debut on the Main Market, opening at 67 sen with a volume of 8.58 million shares changing hands, after the hitting of the gong.
Prior to its market debut, the group saw an oversubscription of 7.18 times through an issuance of 42.25 million new ordinary shares and had successfully raised RM99.07mil in proceeds.
From the proceeds, Mega Fortris will be allocating RM42.98mil towards establishing a new factory in the United Kingdom, RM45mil for its new business venture in Macau and RM11.1mil towards listing expenses.
At closing yesterday, Mega Fortis closed 2.24% down to 65.5 sen.
