GBH targets 20pc from overseas revenue

Ceramic wares and clay pipes maker, Goh Ban Huat Bhd (GBH), expects overseas revenue to grow by 20 per cent in the
financial year ending Dec 31, 2011 from last year's 13.2 per cent.

Its director, Anderson Thor Poh Seng, said the target would be mostly driven by clay pipes division, which was also the main contributor to revenue, accounting for 60 per cent.

"We export to Asian countries including Singapore, Brunei, Hong Kong and the Middle East. These will be the main focus as the market size is still there," he told Bernama after the company's annual general meeting here today.

Thor said being one of two major vitrified clay pipes producers in Malaysia, GBH was well-positioned to benefit from an upswing in the infrastructure industry this year and beyond.


"GBH is also exploring the export potentials to countries outside
Association of South-East Asian Nations," he said. He, however, declined to elaborate.

Beside clay pipes business, GBH also have warehousing, bathroom and sanitary ware divisions, he said. Thor said GBH's challenges were costs, quality and the strengthening ringgit, adding that sanitary ware business faced competition from China and Taiwan.

However, he said, GBH was confident the continued improvement in sales management and productivity would enable it to improve revenue and margins.

On the loss-making tableware division, Thor said, GBH was looking to venture into retail and distributor structure to sustain the business.

"In the past, the division was project-driven and depends on the government allocation and has to compete with foreign brands via open tender.

"Most of the projects depend on new orders or replacement for offices of the ministers and new palaces. "We hope the government will give us preference because our products are
local-made and the quality is as good as other foreign brands," he said. -- Bernama