NST Online Business Times : latest

Ringgit gains against US dollar in early trade

Posted: 26 Jun 2013 06:58 PM PDT

[unable to retrieve full-text content]The ringgit gained against the US dollar in early trade today on fresh demand for emerging currencies, including the local unit, dealers said. At 9.05am, the ringgit was quoted at 3.1830/1860 to the dollar, against 3.1975/1995 at 5pm yesterday. A dealer said there was renewed concerns over the euro after European Central Bank officials made clear, any policy on fiscal tightening, remained a very distant prospect. The local currency was higher against the Singapore dollar at 2.5093/5132 from 2.5144/5165 on Wednesday, and strengthened against the yen to 3.2576/2623 from 3.2761/2795 previously. The ringgit appreciated against the British pound to 4.8789/8848 from 4.9126/9173 yesterday, and rose against the euro to 4.1452/1501 from 4.1711/1741 yesterday.-- Bernama

Maxwell allocates RM416m for expansion

Posted: 26 Jun 2013 07:19 PM PDT

[unable to retrieve full-text content]China-based shoe maker, Maxwell International Holdings Bhd plans to spend RMB800 million (RM416 million) in the next three to five years for business expansion and diversification. Maxwell now has a cashpile of RM315 million and the capital expenditure will be mainly funded through internally generated fund. Of the total expenses, RMB500 million will be utilised to build a new shoe manufacturing factory at Henan province in China. Its chief executive director, Xie Zhen An said the first phase of construction will cost them RMB100 million and the shoe factory is expected to completed by middle of next year. "By end of next year, the factory shall commence operation," he told reporters after the company annual general meeting yesterday. Upon the completion of Henan factory, production capacity is expected to increase from the current 8 million pairs, to 28 million pairs of shoes, if it runs at full speed. The company produced 13 million pairs of shoes last year, half of it were outsourced. The rest of the expenditure will be spent on its fashion retailing business at Xiamen, China. Maxwell plans to set up a new boutique outlet and venture into e-commerce fashion business. "Other than shoe manufacturing, we are also into fashion, retailing and kids wear business. I believe this business model will work well and we will have a promising prospect," he said. On financial performance, the company expects a slight drop this year, dragged down by global economic slowdown and decrease in consumer spending. "This is very normal, business has good and bad times. Now the market is down slightly, but we think next year should be better," he noted. Maxwell's first quarter net profit slipped 13 per cent to RM9.2 million, compared with RM10.6 million in the corresponding period last year. Maxwell, which was listed on main market Bursa Malaysia in January 2011, is one of the nine China counters listed in Malaysia. Investors sentiment towards China stocks was dampened after Singapore's S-Chips scandal surfaced and Malaysia-listed HB Global's external auditor questioned about the company's financial status. The stock closed at 30.5 sen yesterday, a 70 per cent deep discount to its current net asset per share of 99 sen, and way below initial public offering price of 54 sen. Asked if Maxwell would privatise the company, its chief financial officer, Tan Swee Song said they are not considering this option at the moment, although some investment banks and fund managers had approached them. "We want to retain the public-listing company status to attract more new customers. And we are still new in the market, it takes time for investors to change their mindset. "However, in the long run, the company will not rule out the option if there is a good offer," he said.

Kredit: www.nst.com.my

Rabu, 26 Jun 2013

NST Online Business Times : latest

NST Online Business Times : latest

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