- BP Plastics Holdings is aiming for a double-digit sales growth after expanding its plastic operations with a new 3m cast stretch file machine last year.
- With the machine running at full capacity, the group is confident of achieving higher export sales and is targeting to increase export sales to 80 percent of total turnover this year, from the 79 percent achieved last year.
- The group intends to keep its 40 percent dividend policy payout from its net profit and the distribution will also take into account the capital requirements and working capital needed.
Significance: Looking forward, with China’s slowdown and moderate growth in economies globally as well as higher labour costs from recent minimum wage increase for foreign workers, management anticipates a wobbly path ahead. Kenanga Research has stated that the group was able to command stronger earnings before interest and tax margins as compared to its competitors is due to better operating efficiency from managing a single plant and business segment, and estimated FY15 dividend of 8 sen, which includes a 2 sen special distribution.