*NEWS*JADI IMAGING STRIKES THE RIGHT TONE

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*NEWS*JADI IMAGING STRIKES THE RIGHT TONE

 user 2006-02-14 at 9:43:00 am Views: 96
  • #14116

    Jadi strikes the right tone
    Toner
    manufacturer Jadi Imaging Technologies Sdn Bhd expects to achieve a net
    profit of RM10.85mil and revenue of RM63.52mil in this financial
    year.(MALAYSIA)

    “We
    are embarking on additional business strategies to attain our projected
    numbers. These include establishing a facility in Suzhou, China, which
    is expected to commence operations in April,” he told StarBiz in an
    interview.
    “The plant, located in the Suzhou Industrial Park, is
    aimed at providing better services by reaching all our domestic
    customers efficiently.” He added that China was the group’s biggest
    export market, contributing 15% of its sales in 2005.
    “This year, we expect a 23% sales contribution from China due mainly to the setting up of the new plant,” Liew said.
    Jadi,
    which is expected to be listed on Bursa Malaysia second board on Feb
    28, has so far secured eight clients in China. It exports about three
    tonnes per month to the republic.
    It plans to launch its prospectus this month.
    On Oct 27, 2005, Jadi received approval from the Jiangsu Provincial Government to manufacture toners in Suzhou.
    The
    company has set up a subsidiary, Jadi Imaging Technologies (Suzhou) Co
    Ltd (Jadi Suzhou), as a wholly-owned foreign enterprise to produce
    toners for the China market.
    The group had been exporting to China
    since it began operations in 1999, said Liew, adding that Jadi Suzhou
    would allow the group to penetrate deeper into the rapidly expanding
    Chinese toner market.
    Jadi plans this year to add two production
    lines that would almost double its annual capacity to 4,400 tonnes from
    the current 2,300 tonnes. It has three production lines at its plant in
    Shah Alam. The fourth line will be installed in China and the fifth in
    Malaysia.
    “By increasing production lines, we will boost the group’s current year revenue and net profit,” Liew said.
    Jadi’s
    core business is the manufacture of toners, a dry powdery substance
    used as printing material in laser printers, copiers, facsimile
    machines and multi-function office equipment, including those of
    Hewlett-Packard, Canon, Lexmark, Panasonic and Epson.
    The company supplies mainly to the aftermarket clients and only focuses on the supply of bulk toners.
    Liew
    noted that different toner formulations were required for different
    brands and models due to differences in the specifications and
    functionalities.  
    The group had developed 26 formulations of in-house toners as at Nov 15, 2005.
    “We
    allocated about 2.1% of our revenue last year for research and
    development (R&D). This year, we plan to allocate about 3.1%,” he
    said.
    Currently, Jadi manufactures only black toners. However, it
    plans to manufacture colour toners next year to meet the projected
    growth in demand for colour printers globally.
    On Nov 23, Jadi signed an agreement with Universiti Malaya to undertake a joint research on chemical toners.
    Chemical toners are produced using wet chemical processes, which help achieve better quality in colour printing.
    “The
    project will allow us to develop new products and produce high-quality
    toners more efficiently with lower costs. It will also boost Malaysia’s
    competitive edge in toner manufacturing,” Liew said.  
    For the seven
    months ended July 31, 2005, Jadi posted a net profit of RM5.46mil from
    a revenue of RM26.28mil. “For the financial year ended Dec 31, 2005, we
    expect to achieve revenue and net profit of about RM43mil and RM9mil
    respectively,” he said.
    Jadi has 88 customers in 35 countries,
    which include Indonesia, Brazil, Ukraine, Thailand, Vietnam, South
    America and North America.
    Exports accounted for 94.4% of group
    revenue last year, Liew said, adding that Jadi aimed to increase
    customer base in North and South America.
    The company plans to use
    RM6mil from the proceeds of its initial public offering to buy land in
    Shah Alam for a new R&D facility, RM20mil to acquire production
    lines, RM7.7mil for working capital and RM1.6mil for listing expenses
    .