KUALA LUMPUR: KW Machinery Sdn Bhd, which is involved in marketing and sales of imported heavy-duty vehicles and machinery, is eyeing an initial public offering (IPO) on Bursa Malaysia to fund its overseas expansion.
The company aims to dominate the heavy machinery industry in the Asean market, said its director Teoh Siew Im.
“Right now, the focus is to dominate the Sabah and Sarawak heavy machinery market. Next would be the Asean market,” she told NST Business.
Yeoh said the listing of KW Machinery could take place within three to five years, with a share capital of RM2.5 million.
She said the company is working towards increasing its net profit and revenue.
“We have existing contracts worth between RM5 million and RM10 million each.
“The company is bidding for more contracts in Malaysia and Asean. In fact, we have put in a bid with a Japanese heavy machinery company, with the contract worth around RM5 million to RM6 million.”
For the financial year ending December 31, KW Machinery aims to achieve total sales of RM7 million. It is targeting to increase sales by some 110 per cent to RM15 million next year.
“Over the past year, our production has been increasing. We aim to sell more than 100 mobile trucks a year in the next two years, and at least 30 excavators a year in the same time period.
“We also intend to improve our marketing strategy and invest in heavy machinery parts to increase our sales revenue and achieve our sales target next year,” she said.
KW Machinery was established four years ago in Sabah, with an investment of RM5 million.
The company sells lorries, mixer, excavators and cranes. It also produces rebuilt mobile trucks and provide after-sales services to customers.
Its flagship factory was set up at Penampang Bypass in Kota Kinabalu in 2013.
Teoh said the factory has a production value of around RM20 million.
She also said the company is looking to set up a bigger facility which will mainly focus on heavy machinery spare parts.
Teoh said the demand for mobile trucks has been increasing.
On the other hand, the demand for excavators and dump trucks has been declining in the last few years, she added.
Despite market instability, she is upbeat on the company’s mobile truck business.
“We are targeting mobile food truckers, prospective entrepreneurs and investors for our mobile truck business, while we focus on contractors and developers for our heavy machinery business.” Teoh said.