Salutica

Salutica

Postby winston » Sat Aug 20, 2016 7:24 am

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Aug 16, 2016

JF Apex Research said Salutica’s 4QFY16 net profit fell 51.74% on-year to RM7.51mil, on higher income tax due mainly to certain non-deductible expenses.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:25 am

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May 10, 2016

Salutica’s IPO attracts strong interest

KUALA LUMPUR: Consumer electronic product maker Salutica Bhd, en route to a listing on the ACE Market on May 18, has received strong demand for the shares made available for the public.

Tricor Investor & Issuing House Services Sdn Bhd (TIIH) said in a statement that a total of 9,647 applications for 212.985 million shares were received for the 19.4 million shares available, an oversubscription rate of 9.98 times.

For the bumiputra portion, Salutica attracted 5,211 applications for 93.365 million shares, an oversubscription rate of 8.63 times.

The public portion, meanwhile, drew 4,436 applications for 119.62 million shares, which represented an oversubscription rate of 11.3 times.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:28 am

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5 May 2016

PublicInvest Research sets Salutica fair value at 99 sen

KUALA LUMPUR : PublicInvest Research said that shares Salutica Bhd, which is going for listing on May 18, has a fair value of 99 sen, or a 24% upside from its indicative retail price of 80 sen.

In a note on Thursday, the research house said that Salutica, a vertically integrated manufacturer specializing in Bluetooth-enabled electronic products, is set to capitalize on the steady adoption rate of Bluetooth devices in recent years.

“Our earnings expectations are supported by the contribution of new capacity, efficiency improvements through the upgrading of Salutica's manufacturing facilities, and the increasing adoption of Bluetooth technology in other areas,” it said.

According to PublicInvest, global Bluetooth-enabled device shipments grew at a strong compounded annual growth rate (CAGR) of 18.6% from 1.8 billion units in 2011 to 3 billion units in 2014.

Salutica is set to raise approximately RM62.4mil from the issuance of 78 million new shares from its initial public offering.

Its fair value of 99 sen for Salutica's stock is premised on an earnings multiple of 12 times its financial year 2016 (FY2016) earnings with an estimated earnings per share of 8.3 sen.

Apart from its in-house brand called FOBO, among the products manufactured by the company include Bluetooth stereo headsets, other electronic products and precision parts as well as components such as 3D glasses.

Additionally, the company has also developed a Bluetooth-enabled tyre pressure monitoring system, electronic sensors, tracking devices and beacon transmitters under the FOBO name.

At present, FOBO products are sold mostly in developed countries through direct e-commerce sales on websites, third party platforms or appinted distributors.

Most of Salutica's customers comprise multinational corporations such as Plantrocnics, Jaybird and Sony, contributing about 90% of the company's total revenue.

PublicInvest noted that Salutica is targeting a long term payout ratio of at least 30% of its net profits.

“With strong cash reserves after listing, a healthy dividend payout should be sustained.

We estimate the company's dividend yield for FY17 at 3.1% on the back of a 30% payout ratio assumption,” it said.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:29 am

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May 2, 2016

RM25mil from Salutica’s listing will be used to expand the company’s production capacity and its high-end Bluetooth product line.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:31 am

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April 29, 2016

Salutica to raise RM62mil from IPO: Salutica Bhd, en route a listing on the Ace market of Bursa Malaysia on May 18, is poised to raise gross proceeds of RM62.4mil of which RM25mil has been earmarked to expand the company’s capacity in the production and creation of high end bluetooth related product range.

Source: StarBiz
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:35 am

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"Salutica Allied Solutions Sdn. Bhd. is a Malaysian electronics manufacturing company that was founded on 15 October 1990 and headquartered in city of Ipoh, Perak.

The company was formerly known as Balda Solutions Malaysia Sdn. Bhd. before a private management buyout in April 2013 and is now wholly owned by Malaysians.

Salutica specialises in consumer and business electronic product development like Bluetooth stereo headsets, smart watches and precision light guides for optical touch screen system.

Salutica is primarily an original design manufacturer and its clients include major American, European, and Japanese electronics and information technology companies.

Salutica offers 'one stop' vertically integrated solutions for electronics and plastic manufacturing.

Its in-house services span from product design, precision engineering plastics injection, high quality secondary cosmetic treatment, PCBA to high volume manufacturing of complete electronics products, especially Bluetooth consumer electronics products.

Salutica has successfully launched a series of patent pending products under its own brand “FOBO”. FOBO is an acronym for For Our Better wOrld. FOBO products such as the world’s first all Bluetooth Smart TPMS FOBO Tire and FOBO Bike, FOBO Tag/Max are designed to enhance ways of living and to help preserve the environment.

Developed and manufactured by Salutica, FOBO products are being sold in 28 countries across Europe, Americas, Middle East, Asia, Africa and Oceania.

http://www.salutica.com/
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:39 am

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FY 2016

Revenue: +65%
EPS: -14%

http://salutica.com/Salutica-FSQ416.pdf
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:42 am

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29 April 2016

Salutica to raise RM62mil from IPO

KUALA LUMPUR: Salutica Bhd, en route to be listed on the Ace market of Bursa Malaysia on May 18, is poised to raise gross proceeds of RM62.4mil of which RM25mil has been earmarked to expand the company’s capacity in the production and creation of high end bluetooth related products range.

The initial public offering (IPO) price would be at 80 sen per share involving a total offering of 101 million ordinary shares comprising a public issue of 78 million new shares and an offer for sale of 23 million existing shares.

“Looking ahead, Salutica will continue to focus on high value added bluetooth products as we believe it remains a compelling market as well as being a technology that is entrenched in our daily lives.

“New applications of bluetooth technology are being developed and introduced every now and then for use in wearables, home applications and even the healthcare industry just to name a few.

“About three billion bluetooth products were shipped worldwide in 2013, and this number is expected to reach 4.9 billion in 2018. Furthermore, with the advent of the Internet of Things (IoT), we will see an increased connectivity in our daily lives, and IoT is a concept which is already embodied in our in-house brand- FOBO products.

“These favourable conditions will hopefully continue to create new possibilities for Salutica to explore further growth and expansion,” said managing director and chief executive officer James Lim at the company’s prospectus launching yesterday.

Salutica, through its wholly-owned subsidiary, Salutica Allied Solutions Sdn Bhd, is principally involved in the design, development and manufacture of consumer electronic products such as bluetooth-related devices, as well as other electronic products and precision parts and components for multinational corporations and brands.

Salutica also has its own in-house product line of Bluetooth 4.0 technology products, under the brand name of FOBO and the current product line comprise amongst others, FOBO Tire, FOBO Tire Plus, FOBO Bike, FOBO Xtra, FOBO Tag, FOBO Max and FOBO Beacon.

The remaining RM8.2mil is for the expansion of the company’s research and development department, expansion of facilities, equipment as well as workforce.

The balance of RM8.5mil will be allocated for the repayment of bank borrowings, and a further RM4mil will be allocated to defray listing expenses. RHB Investment Bank Bhd is acting as the principal adviser, sponsor, underwriter and placement agent for this IPO.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:46 am

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20 July 2015

Tech a load off

CEO of electronics manufacturer Salutica Allied Solutions James Lim believes you have to keep pace with or be ahead of the world to stay competitive and keep your company on sure financial footing, writes LIM WING HOOI.

As the saying goes, nothing beats real-life experience. Having once been tasked with kicking 10,000 people out of a job, James Lim Chong Shyh vowed to never undergo such an unpleasant experience again.

Turning around businesses and saving jobs has since became something of a specialty and priority for Lim, and it is what led to him becoming a factory owner.

Now chairman and CEO of Salutica Allied Solutions, an original design manufacturer (ODM) of electronic components, Lim still vividly remembers the nasty task he had to execute. The year was 2000 and he was operations executive director at hard-disk drive manufacturer Seagate in Ipoh.

Worldwide recession and excess capacity meant the Ipoh plant had to be shuttered, with 10,000 workers left out in the cold.

“The thought of affecting so many people’s livelihood was dreadful. Each day passed like a knife slicing across my heart. It was beyond my control. I forsaw many employees would be unemployed for several years,” he recalls.

The company operates a 30,000 sqm one-stop design, sales, administration and manufacturing plant in Kawasan Perindustrian Zarib, Ipoh.

After they were retrenched, some took to selling insurance, some set up fried banana stalls or gave tuitions, and many became brokers and traders.

“I fought on their behalf for the best compensation, even threatening to resign if the company did not accede. And the Singaporean management listened to my plea, finally acceding fully to the best bargain I put on the table,” he says.

Subsequently in mid-2000, Lim was offered the same position at Seagate’s Penang factory on the northern side of Bayan Lepas, with a strong chance of becoming managing director of Penang operations within two years.

“I rejected the offer in the spirit of soliditary with the laid-off employees,” Lim reveals.

Instead, he asked to be transferred to another division, Seagate RSS (removable storage solutions) another plant in the southern part of Bayan Lepas, Penang, which had been facing financial and technological challenges for years. Lim took this difficult path because he hoped to turn things around and save the 800 jobs that would be at risk should management decide to close down the plant.

He spent three years there, and when he left he had a strong team in place and a unit that was beginning to show a profit.

“I put a strong management system in place with quality systems, and the division was eventually sold to another electronics manufacturing multinational corporation (MNC), Benchmark Electronics in 2007, with most of the jobs intact,” he says.

By then, Lim had acquired a reputation as the “turnaround guy”. In 2003, he was headhunted and offered the position of managing director at a hearing aid component manufacturer in Penang.

The Chicago-based MNC had a management crisis, and when Lim took charge, he shipped out some of the more senior management staff. Middle management and staff from the lower echelons were sent for retraining based on performance and attitude.

The company started to show improvements in its operations, but then Lim had disagreements with the overseas management who intervened with some of the staff movements he had implemented.

Being headstrong and holding to a merit-based policy, Lim left in 2004 after he was offered the job of CEO at Balda-Thong Fook Solutions Sdn Bhd, a Germany-Malaysia joint venture company that was doing original equipment manufacturer (OEM) jobs in electronics and plastic components for consumer electronic devices, including feature phones.

Having had three bad experiences involving technological changes making jobs obsolete, Lim stressed to the owners that the company had to move away from labour-intensive activities and merely charging for labour and assembly costs.

Telling the owners: “You may own the company but I am the CEO”, he started a R&D department and steered the company into the original design manufacturer (ODM) business.

His instincts proved right on the money as the OEM business took a hit in 2009 with the introduction of smartphones. Almost overnight, feature phones became obsolete.

Meanwhile, the R&D department, which was able to build and design almost any electronic item, secured new clients who wanted electronic goods like headsets and speakers.

“The ODM business, which made us very good at bluetooth technologies involving headset to speakers, kept us standing, but the German owners (who took 100% control in 2006) were not interested in the electronics business, compared to the plastic-moulding segment,” Lim recalls.

This was understandable as the margins for plastic-moulding OEM were as high as 20% whereas electronics ODM could, at most, fetch 7%, according to Lim.

“They couldn’t accept this, and so on April 2013, proposed that we take over ownership via a management buyout (MBO). After deliberating for a few months with the top management, we signed the deal in September 2013 and changed the company’s name to Salutica, beginning a new journey as new owners (with Lim taking majority ownership),” he explains.

Lim was already 55 at the time, and his wife wanted him to retire instead so that he could spend more time with the grandchildren. Much as he wanted to do this, Lim knew he had to go ahead with the buyout. The future of the employees looked uncertain, especially with new owners not understanding the business.

“The first thing on my mind was to preserve as many jobs as possible, with comparable remunerations so that everyone’s livelihood could be sustained,” he says.

Lim’s next move was to offer all qualified employees a stake in the new company, and he paid generous bonuses depending on the company’s financial performance. The company continued to invest in state-of-the-art equipment throughout the factory.

“We also play by international ethical rules, being fully compliant with IP rights and quality standards. This put us in a business sector that has a high barrier to entry for would-be competitors,” he points out.

The company’s chain of command had also gone through a shake-up, with greater autonomy given to senior managers, which Lim reinforces from time to time with this line: “Just do what you think is best for the company.”

Today Salutica operates a 30,000 sq m one-stop design, sales, administration and manufacturing plant in Kawasan Perindustrian Zarib, Ipoh with about 980 workers (both contract and permanent). It’s a head-count that has remained stable since the MBO days.

Having invested over RM5mil to date on machinery and other technological upgrade, such as starting a mobile applications (apps) development division, the mid-tier company is also now marketing their own products. The FOBO Tire is one of them.

The Tire Pressure Monitoring System (TPMS), which uses the latest Bluetooth technology to monitor tyre pressure, was launched in late 2014 and has sold over 5,000 units to the US, Germany, Japan and countries in the region.

When asked about his five-year plan, Lim laughs.

“That’s an oxymoron plan in this business. Things change so fast, it requires constant decisions. And you would be thankful if you could nail down a plan for a year,” he remarks.

“I revised our plan every six months with the management team, where we will decide to retain, chop, add, downsize or increase the risk in all our business portfolios. This is even more true for our design directives, as you have to keep pace with or be ahead of the rest of the world,” he concludes.

Source: The Star
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Re: Salutica

Postby winston » Sat Aug 20, 2016 7:48 am

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13 March 2015

Manager turns entrepreneur

BY LIM WING HOOI

Source: The Star

http://www.thestar.com.my/metro/metro-b ... akes-over/
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