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Govt policy boosts YLI Q1 performance.
By David Tan in Penang
YLI Holdings Bhd, which achieved pre-tax profit
of RM 7.46mil on the back of RM 25.2mil in turnover for the 1st
quarter to June 30, has attributed the stronger results to the government
policy for new water pipes and a lower rate of non-revenue water.
It's group managing director Loh Yok Yeong told
Star Business that the government policy meant better business for
companies involved in the production of water supply pipes.
"As we are the country's leading manufacturer
of ductile iron pipes, our share of the ductile iron pipes supply
also increase correspondingly," he said.
The company had achieved RM 4.73mil in pre-tax
profit and RM17.6mil in turnover for the last quarter ended March
31,2002.
Loh said that for the 1st quarter of the financial
year 2003, the demand for the group's ductile iron pipes came from
Kedah, Johor, Penang, Pahang, and east Malaysia, where there were
new water-pipes rehabilitation projects.
Since 1999, the use of ductile iron pipes has become more popular,
as local water authorities are ware that ductile iron has a longer
life span and is easier to install and maintain.
"Since 1999, YLI supplies about 20% of the
ductile pipes used by local water authorities in the country per
year. Prior to that period, we supplied less than 10%," he
said.
Loh said the technical expertise of its engineers
to design and manufacture the supporting machinery of the plant
also contributed to the group's higher turnover and profit.
He said its RM4mil carburiser manufacturing plant
in Fujian also helped to play a role in reducing the group's expenditure
on raw materials and strengthened its profits, since it started
operations in January.
"Prior to the establishment of this plant
in China, we had import carburiser, an essential ingredient of iron
and steel products, from Europe. Now that we can obtain the raw
materials from our plant in China, we have cut down on buying raw
materials from Europe. We also export the carburiser produced in
China to the Far East and Europe," he said.
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