CYL Corp expects 5-10pc revenue hike (7157)

KUALA LUMPUR: CYL Corp Bhd expects its revenue to increase between five per cent and 10 per cent for its current financial year, driven by an increased number of customers, said managing director Chen Yat Lee.

CYL Corp, listed on the Main Market of Bursa Malaysia, is an investment holding company with its sole subsidiary Perusahaan Jaya Plastik (M) Sdn Bhd principally involved in the plastics packaging industry.

Chen said the group's turnover amounted to RM61.6 million for the previous financial year ended Jan 31, 2012, down 4.8 per cent from its 2011 financial year, while pre-tax profit reached RM3 million.

"We have a lot of multinational customers, whereby their performance, coupled with the local economy, will set the trend of our revenue. But five per cent improvement is not a problem," he told Bernama after the group's annual general meeting today.

On capital expenditure, Chen said the group has allocated RM8.8 million for the current financial year, with RM4 million for machinery upgrading.

The group would continue to invest in technology upgrading, including in high-speed machinery to mitigate escalating production costs as well as to improve productivity and efficiency, he said.

The company, which has a manufacturing facility with 500 metric tonne monthly capacity in Shah Alam, has been operating for more than 25 years.

Chen said the group has no plans to venture into other industries in the mean time, given that its expertise lies in the plastics packaging industry.

"We can't simply diversify business for the sake of diversification but minus the expertise. However, when the opportunity presents itself, we will consider," Chen added. -- BERNAMA