China units - ISH Logistics (Shenzhen) Ltd, ISH Logistics
(Shenzhen II) LTD, ISH
Logistics (Shanghai)
LTD - with an additional investment of HK$29.1mil (RM15mil).
Analysts said the investment
could further strengthen the company's presence in Shenzhen
and Shanghai. Both the cities have sizeable numbers
of multinationals, which had in the past several years
established manufacturing bases there.
For its first quarter,
ILB reported a 20% rise in turnover to RM44.6mil from
RM36.9mil a year ago. It attributed the growth mainly
to higher contributions from the China operations and
higher occupancy rate at its warehouses locally.
"I believe the company's
second-quarter results will be better, as most of the
warehouses, particularly those in China have had higher
occupancy rates," an analysts with a local stockbrokerage
said.
In Shenzhen, ILB is one
of the logistics providers for IBM Corp, which has a
large manufacturing facility in the city that produces
nearly 70% of IBM laptops for the world market.
As for Shanghai, ILB's
main customer is IKEA, which has stores in Beijing and
Shanghai as well as in Hong Kong.
Being one of the first
Malaysian companies to establish itself in China would
give ILB the edge over others, in view of the rapid
growth of the country, said a fund manager with a local
brokerage.
"Compared with other
(Malaysian) companies which only recently ventured into
China, ILB has already established itself there,"
the fund manager said.
ILB's operations in China
currently contribute about 20% of its total revenue,
but that is expected to increase in the future. |
