KUALA LUMPUR: DPI Holdings Bhd plans to double its production capacity by 2020 via costruction of a new plant and upgrading of four existing aerosol filling lines.
The new factory will feature four new and fully automated filling lines, DPI executive chairman and managing director Peter Chai said.
Chai said the growth in group revenue was to an extent, limited by capacity constraints. The issues would be addressed by its new factory.
“The new installed machinery will double our current production capacity and is expected to commence within 2020.
We believe that with the commissioning of our new factory, we will be able to introduce more product range as well as improve on our margins and contribute positively to the group’s future revenue,” Chai told reporters after DPI’s annual general meeting today.
He added that although the economic landscape continues to be challenging in the near term, the group had seen opportunities in other potential new markets overseas.
“The group will continue to pursue these markets and offer our unique brand value propositions,” he said.
DPI posted RM2.44 million net profit in the fourth quarter ended May 31 2019 (Q4FY19). Group revenue stood at RM13.37 million on the back of sales of aerosol products as well as solvents and thinners.
Chai said despite challenging operating conditions from unfavourable headwinds and escalating volatilities, its business continued to record commendable results.
“For FY19, we recorded RM49.1 million revenue and RM6.4 million net profit. The shareholders have given their approval for us to distribute a final single tier dividend of 0.4 sen per share for FY19,” he said.
The aerosol products segment contributed RM10.79 million or 80.68 per cent to the group’s total revenue while solvents and thinners contributed RM2.58 million or 19.32 per cent in Q4FY19.
There are no comparative figures for the preceding year’s corresponding quarter as this is the company’s first financial announcement since its listing early this year.