PETALING JAYA: Sticky tape manufacturer Central Industrial Corp Bhd (CIC), which is seeking a controlling stake in contractor Proventus Bina Sdn Bhd (PBSB), sees better revenue and profit contribution ahead.
CIC chairman Dr Uzir Abdul Malik said the company decided to diversify income stream by acquiring a 20 per cent stake in PBSB a year ago, a contractor that has good track record in building affordable homes.
"We are accumulating our stake in PBSB Bhd to 51 per cent from the current 20 per cent. This deal should conclude in two months,” Uzir told reporters after the company's shareholders meeting here today.
CIC makes and sells masking tapes, UV painter tapes, and double sided industrial tapes, as well as specialty tapes for general applications, including industrial grade and general purpose grade cloth tapes, PVC insulating tapes, cellulose tapes, and aluminum foil tapes.
Its factory in Kedah also manufacture mirrokote, art, printing, and brown Kraft paper labels; film based label stocks consisting of polyester, OPP printing, cenic synthetic, static vinyl, and soft PVC labels.
Just over half of CIC’s industrial grade sticky tapes are being exported to Asia, Australia, New Zealand, the US, Europe, and Latin America.
"Our core business is that of manufacturing and selling industrial grade adhesive tapes. Our masking tape are mostly use by car spray paint workshops and precision indoor painting.
“We have been in this business since 1972,” CIC managing director Alex Wong Yuk Thin said.
Echoing Uzir, Wong sees good prospects in PBSB securing sizeable jobs in Klang Valley, having successfully delivered affordable homes in Penang and Ipoh.
He noted the newly sworn-in government in zero-rating the Goods and Services Tax and subsidising petrol and diesel prices at the pump is raising consumers’ disposable income.
“This bodes well for our business as this would spur more consumer spending.”
As for affordable housing within Klang Valley, he said PBSB also see good business opportunities in the government spending wisely to upgrade existing facilities at Projek Perumahan Rakyat (PPR).
“There's resilient demand for affordable housing and upgrading facilities at existing apartments.
PBSB, a G7 class contractor registered with the Construction Industry Development Board, can tender for such jobs,” Wong said.
While CIC did not declare any dividend policy, it is paying out 1.75 sen per share to investors.
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