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Tag: Yew Lee Pacific Group Berhad

  • Yew Lee Announces RM5.7 Million Revenue for Q3

    Yew Lee Announces RM5.7 Million Revenue for Q3

    Yew Lee Demonstrates Resilience in Navigating Market Challenges

    Managing Director of Yew Lee, Mr. Ang Lee Leong

    In 3Q FY2023, Yew Lee reported a revenue of RM5.7 million, compared to RM6.1 million in the same quarter of the previous year. This change is primarily due to variations in sales orders. Notably, the Group’s manufacturing business remained profitable, contributing positively to the overall financials. However, an overall slight loss after tax of RM0.1 million was recorded for this quarter, against a profit after tax of RM0.8 million in the corresponding period last year. This was largely due to challenges faced in the trading business segment, which offset the gains from manufacturing.

    The revenue breakdown for 3Q FY2023 shows that the manufacturing segment contributed RM3.5 million, while the trading segment accounted for RM2.2 million. The manufacturing segment of Yew Lee demonstrated resilient performance, achieving an operating profit of RM0.3 million. In contrast, the trading segment faced some setbacks, resulting in an operating loss of RM0.3 million.

    On a quarter-on-quarter basis, revenue rose to RM5.7 million in 3Q FY2023 from RM5.1 million in the previous quarter, an increase of 11%. This was attributed to a slight uptick in sales orders. The quarter’s loss after tax of RM0.1 million improved from a RM0.4 million loss in the preceding quarter, influenced by income tax expense and higher administrative expenses in the previous quarter, partially cushioned by a shift towards higher-margin products.

    Mr. Ang Lee Leong, Managing Director of Yew Lee, stated, “While the rubber glove industry continues to be a significant sector for us, we are actively exploring new avenues for growth. Our commitment to diversifying our market reach and enhancing our operational efficiency remains steadfast. We are optimistic about the future and believe that our strategic initiatives will enable us to generate increased income and ensure Yew Lee’s resilience and long-term stability in a dynamic global market. In addition, our trading segment will endeavor to secure larger and more consistent plus sustainable contracts as part of our ongoing turnaround strategy.”

    In line with the Group’s strategy to expand its market presence, Yew Lee is establishing a new subsidiary in Thailand, focusing on industrial brush manufacturing. This decision comes after careful evaluation of the Thailand market, where a stable demand for industrial brushes has been identified. The Group is investing RM9 million from its IPO proceeds for this venture, with RM5.5 million allocated for purchasing additional manufacturing machinery and equipment, and RM3.5 million for setup costs and working capital requirements. So far, an investment of RM1.2 million has been made towards this expansion. Yew Lee’s venture into Thailand is a strategic move to strengthen the Group’s market position and enhance its competitiveness in the Southeast Asian region.

    As at 23 November 2023, the share price of Yew Lee stands at RM0.37, representing a market capitalisation of RM197.7 million.

  • Yew Lee Posts RM6.1 Million Revenue in 3Q

    Yew Lee Posts RM6.1 Million Revenue in 3Q

    Group to focus on diversifying customer base while improving manufacturing efficiency and expanding to overseas markets.

    Yew Lee Pacific Group Berhad, a manufacturer of industrial brushes as well as trading of industrial hardware and machinery parts, today announced that the Group recorded revenue of RM6.10 million for the third quarter ended 30 September 2022 (3Q FY2022).

    Managing Director of Yew Lee, Mr. Ang Lee Leong

    There are no comparisons on a year-over-year basis as the Group was listed on the ACE Market of Bursa Malaysia Securities Berhad on 7 June 2022.

    For the quarter under review, Yew Lee reported gross profit of RM2.12 million while registering profit before tax (PBT) of RM0.96 million and profit after tax of RM0.76 million. For the nine-month period ended 30 September 2022 (9M 2022), the Group registered RM24.35 million in revenue while recording a profit before tax of RM0.39 million and a loss after tax of RM0.41 million.

    Manufacturing activities contributed RM3.84 million to total revenue while trading activities contributed RM2.27 million in 3Q FY2022.

    Managing Director of Yew Lee, Mr. Ang Lee Leong said, “We continue to sustain and generate profit from our operations. It is worth noting that stripping the one-off listing expenses of RM2.70 million, the Group would have reported a 9M 2022 PBT of RM3.0 million.

    “The Group’s immediate plans is to reduce its dependency on the rubber glove industry by seeking opportunities in the semiconductor, timber, glass and agriculture industries. We are encouraged by the political stability from the appointment of a new Prime Minister, and we hope that the new government will be supportive of the economy with sound policies and measures.”

    “Besides diversifying our customer base, which will take time, the Group is also improving its manufacturing efficiency and automating manufacturing processes by acquiring additional automated machinery and equipment to support the long-term growth of the business. We are also expanding the trading of industrial hardware and machinery parts especially in the central and southern regions of Peninsular Malaysia and, expanding to more markets overseas.”

    The Group’s overseas markets include Thailand, Vietnam, Indonesia and Taiwan, which contributed about a quarter to total revenue in the financial year ended 31 December 2021.

    Yew Lee Pacific Group Bhd: 0248 [BURSA: YEWLEE], https://yewlee.com.my/

  • Yew Lee Proposes Bonus Warrants and ESOS

    Yew Lee Proposes Bonus Warrants and ESOS

    Proposed bonus warrants to reward existing shareholders while ESOS recognises contribution of eligible employees

    Yew Lee Pacific Group Berhad (Bursa: YEWLEE, 0248), an established manufacturer principally involved in the manufacturing of industrial brushes as well as trading of industrial hardware and machinery parts, today proposed to undertake a bonus issue of warrants and the establishment of an employees’ share option scheme (ESOS) to reward existing shareholders as well as recognise contribution of eligible employees.

    Mr. Ang Lee Leong, Managing Director of Yew Lee

    The proposed bonus issue of warrants will involve 1 warrant for every 2 existing ordinary shares in Yew Lee held by the entitled shareholders or the issuance of 266,217,800 warrants based on the total issued share capital of Yew Lee of RM67,530,363 comprising 532,435,600 ordinary shares as at the latest practicable date (LPD) of 3 October 2022.

    The proposed ESOS to be issued will not exceed 30.0% of the total number of issued shares for eligible employees and directors of Yew Lee and its subsidiaries.

    Mr. Ang Lee Leong, Managing Director of Yew Lee, said, “We want to reward existing shareholders for their support by enabling them to participate in warrants that come at no cost to them, and which are tradeable on the ACE Market of Bursa Securities Malaysia Berhad. It also allows them to increase their equity participation in the Company’s shares at a pre-determined exercise price over the tenure of the warrants and, benefit from any potential capital appreciation of the warrants.”

    “The proposed ESOS is to recognise the contribution of eligible employees and at the same time, is part of the Company’s plan to develop and expand our human capital. The ESOS will allow us to align the long-term interests of eligible employees with those of shareholders to help achieve Yew Lee’s business objectives.”

    M&A Securities and Eco Asia Capital Advisory Sdn Bhd have been appointed as the principal adviser and financial adviser, respectively to the Company in relation to the proposals, which are expected to be completed by the first quarter of 2023.

    Yew Lee Pacific Group Bhd: 0248 [BURSA: YEWLEE], https://yewlee.com.my/

  • Yew Lee Pacific Group Berhad Debuts at RM0.285 on ACE Market

    Yew Lee Pacific Group Berhad, an established manufacturer principally involved in the manufacturing of industrial brushes as well as trading of industrial hardware and machinery parts, was successfully listed today on the ACE Market of Bursa Malaysia Securities Berhad with an opening price of RM0.285 sen per share, compared with the initial public offering (IPO) price of RM0.28 sen per share.

    Ms. Andrea Huong, Independent Non-Executive Director, Yew Lee; Ms. Lim See Tow; Mr. Andrew Yaw; Ms. Ang Poh Yee, COO & Executive Director; En. Mahdzir Bin Othman, Independent Non-Executive Chairman; Mr. Ang Lee Leong, Managing Director; Ms. Chee Wai Ying, Executive Director; Mr. Ang Lee Seng; Datuk Bill Tan, Managing Director of Corporate Finance of M&A Securities; Mr. Danny Wong, Deputy Head of Corporate Finance; Mr. Woon Soon Fai, Financial Adviser of Eco Asia Capital Advisory[L-R]
    Thanking the Securities Commission Malaysia, Bursa Securities, M&A Securities Sdn Bhd, Eco Asia Capital Advisory Sdn Bhd and other professionals involved in the IPO, Chairman of Yew Lee Encik Mahdzir Bin Othman said, “I am extremely grateful to share this wonderful moment with the investors, customers and suppliers who have supported our humble company since its inception in 2004 as an industrial brush manufacturer. We are overwhelmed by the positive response and are very pleased with our debut on the ACE Market today.”

    The Company is raising RM37.27 million from the IPO exercise. From the IPO proceeds, RM10.9 million would be used for the purchase of additional machinery and equipment, RM7.3 million for the construction of a new warehouse facility and office building in Pusing, Perak, RM1.8 million for renovation of new office in Klang Selangor, RM8.9 million for the repayment of bank borrowings, RM4.57 million for working capital requirements and RM3.8 million for the listing expenses.

    Encik Mahdzir also announced that Yew Lee will continue to strengthen their market position as one of the key industry players in the industrial brush industry in Malaysia. “We see this listing as an opportunity to realise our future plans and strategies, including expansion and upgrading of our production facilities as well as developing a range of customisable industrial brushes catering to a diverse customer base.”

    “As such, we have also allocated RM3.6 million from our IPO to make advance purchases on materials to support the increase in our manufacturing activities in tandem with the rise in demand of our range of brushes. This will improve our inventory and availability levels and shorten overall lead time for delivery. The purchase of additional machinery and equipment is also to automate production processes and reduce labour costs.”

    Yew Lee currently has an estimated market share of 12.4% of the total size of the industrial brush industry in Malaysia of RM254.50 million in 2021, based on the Company’s revenue from the manufacturing of industrial brushes segment of RM31.60 million during the financial year ended 31 December 2021.

    The Company plans to automate more of its operations to reduce dependency on labour and intends to expand market share in the trading of machinery parts in the central region of Peninsular Malaysia as well as have a bigger presence in Indonesia and Thailand through Yew Lee Indonesia and Yew Lee Thailand, both of which were established in 2019.

    The Company recently declared a first interim dividend of RM0.003 sen per ordinary share in respect of financial year ending 31 December 2022 (FY2022) to be paid on 12 July 2022.

    M&A Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for Yew Lee’s IPO while Eco Asia Capital Advisory Sdn Bhd is the Financial Adviser for the IPO.

    Yew Lee Pacific Group Bhd: https://yewlee.com.my/

  • Yew Lee Pacific Group Berhad Launches Prospectus for ACE Market IPO

    Ipoh-based industrial brush manufacturer to raise RM37.27 million from listing

    Yew Lee Pacific Group Berhad (YLPG), an established manufacturer principally involved in the manufacturing of industrial brushes as well as the trading of machinery parts and industrial hardware, launched the Company’s prospectus today for an initial public offering (IPO) leading to a listing on the ACE Market of Bursa Malaysia Securities Berhad.

    MR. LEE YOKE WAH, Associate Director of Corporate Finance, M&A Securities; MR. GARY TING, Head of Corporate Finance; MS. ANG POH YEE, Chief Operating Officer & Executive Director, YLPG; DATUK BILL TAN, Managing Director of Corporate Finance, M&A Securities; EN. MAHDZIR BIN OTHMAN, Independent Non-Executive Chairman, YLPG; MR. ANG LEE LEONG, Managing Director; MR. DANNY WONG, Deputy Head of Corporate Finance, M&A Securities; MR. KELVIN KHOO, Managing Director, Eco Asia Capital Advisory [L-R]
    The Company’s IPO involves the issue of 133.10 million new shares to be issued at RM0.28 sen per share and an offer for sale of 26.62 million existing shares by way of private placement to selected investors. The public issue shares will be made available for application in the following manner:

    Public issue

    • 26.62 million new shares made available for application to the Malaysian public
    • 15.97 million new shares allocated for application by eligible directors and employees
    • 23.96 million new shares by way of private placement to selected investors
    • 66.55 million new shares by way of private placement to identified bumiputera investors approved by the Ministry of International Trade and Industry (MITI)

    The IPO is expected to raise gross proceeds of RM37.27 million to be utilised in the following manner:
    Utilisation of proceeds

    • RM10.90 million for purchase of machinery and equipment
    • RM7.30 million for construction of warehouse facility and office building
    • RM1.80 million for renovation of office building
    • RM8.90 million for repayment of bank borrowings
    • RM4.57 million for working capital
    • RM3.80 million for listing expenses

    Managing Director of YLPG, Mr. Ang Lee Leong, said: “The launch of this Prospectus is an important milestone for us as it marks the fruits of our labour from when we first started operations in 2004. As an established producer of industrial brushes, we embarked on this IPO to raise funding for our growth plans and elevate our profile in the industry.”

    “To maintain sustainable growth and create long-term shareholder value, we have plans to expand manufacturing capacity and increase automation which the proceeds from the IPO enables us to implement. We are also constructing warehouse and office facilities as the current facilities are needed for the expansion of the Group’s manufacturing activities and also to cater for future business growth.”

    YLPG produces industrial and technical brushes for various manufacturing industries including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers. For the financial year ended 31 December 2021 (FY2021), 76.8% of the Group’s total revenue was mainly derived from Malaysia while the remaining 23.2% was derived from the overseas market primarily located in Thailand, Vietnam, Indonesia and Taiwan, representing approximately 7.0%, 5.8%, 3.3% and 5.8% respectively.

    Deputy Head of Corporate Finance, M&A Securities Sdn Bhd, Mr. Danny Wong said: “The proceeds from the IPO will allow YLPG to increase its manufacturing capacity in order to support its expansion plans and capitalise on the post Covid demand recovery. As such, we are confident that Yew Lee’s shares will be well received upon IPO.”

    M&A Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for YLPG’s IPO while Eco Asia Capital Advisory Sdn Bhd is the Financial Adviser.

    Yew Lee Pacific Group Bhd: https://yewlee.com.my/

     

  • Yew Lee Pacific Group Bhd Engages M&A Securities Sdn Bhd to Manage Listing Exercise

    Yew Lee Pacific Group Bhd (Yew Lee), an established manufacturer of industrial brushes as well as the trading of machinery parts and industrial hardware is pleased to announce that it has entered into an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities) today for the Company’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).

    Chief Operating Officer of Yew Lee, Ms. Amber Ang; Managing Director of Yew Lee, Mr. Ang Lee Leong; Managing Director of Corporate Finance of M&A Securities, Datuk Bill Tan; Deputy Head, Corporate Finance of M&A Securities Mr. Danny Wong [L-R]
    The IPO exercise involves the public issue of 133.1 million shares and an offer for sale of 26.62 million shares to selected investors. From the public issue, 26.62 million shares will be made available for application by the Malaysian public via balloting; 15.97 million shares will be allocated to its eligible directors and employees (pink forms); another 23.96 million shares will be reserved for private placement to selected investors and; an allocation of 66.55 million shares will be allocated through private placement to bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

    Under the underwriting agreement, M&A Securities will underwrite 42.59 million shares of the total proposed issue of shares allocated to the Malaysian public and through pink forms. M&A Securities will also place out 90.51 million issue shares to selected investors and bumiputera investors approved by MITI.

    Managing Director of Yew Lee, Mr. Ang Lee Leong, said: “We are delighted to be working with M&A Securities on our IPO as this underwriting agreement marks the first stage of the path towards our eventual successful listing on the ACE Market of Bursa Securities. This listing will help us to raise the capital needed for our expansion plans while at the same time, boost our brand visibility in the industrial brush industry.”

    Managing Director of Corporate Finance of M&A Securities, Datuk Bill Tan said, “We are pleased to be playing a key role in the IPO exercise of Yew Lee. The Company has solid experience and expertise in the production of industrial brushes with a history that goes back to the early 1990s. It has come far but we have no doubt that Yew Lee will build upon this listing to excel even further. We wish the Company well as it enters a new stage in its growth.”

    Yew Lee manufactures industrial brushes for a variety of industries, including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers. For the financial year ended 31 December 2020 (FY2020), Malaysia contributed 81.4% of total revenue, with Thailand contributing 6.7% and Vietnam contributing 6.2%. By industry, glove manufacturers contributed 88% to revenue in FY2020.

    Yew Lee Pacific Group Bhd: https://yewlee.com.my/