The company was started in 1993 and listed in SGX in 1999. The two core businesses are:
Manufacture and distribute plastic building products through Vicplas Holding Pte Ltd and Rumples Industries Sdn Bhd. Products include uPVC pipes, fittings and electrical conduits for
Waste & portable water systems
Underground electrical & building piping systems
Data & signal ine piping for telecom companies.
Develop, manufacture sterile & non-sterile medical devices through subsidiaries
Forefront Medical Technology (Pte) Ltd,
Forefront Medical Investment Pte Ltd and
Forefront Medical Technology (Jiangsu) Co. China
Majority of the firm business are currently from Singapore.
Financial - FYJul21
Revenue grew 28% to $114M. Gross margin held steady at 17.4% after trending lower from FY15 peak of 26.5%. Together with improved Other Income from tooling business from Medical customers. Net profit grew 109% from $5.0M to $10.4M between FY20 & FY21.
Note: High Other Income of $6.9M explain why NM is higher than OM.
Pipes & Fittings was the key reason for the sharp decline in margin; reducing from 25.2% in FY16 to 9.4% in FY20 & FY21.
From FY19, the company successful turnaround Medical Devices segment. Margin gradually grew to 15.1% in FY21.
To grow Medical devices segment, VicPlas is investing in capabilities like in-vitro diagnostics, medical extrusions and electro-mechanical devices.
Expanding manufacturing capacity in Changzhou, China and possible establishment of a fifth site 'near USA' will help provide the foundation for future growth.
1HJan22 results is showing signs of margin weakness despite revenue growing 12% YoY. This is due to rising electrical, material & labour cost, supply chain disruption and start-up cost for Changzhou plant expansion. If these issues continue to persist, 2HJul22 financial performance may face some degree of headwind.
Productivity & gross margin improvement will determine whether VicPlas could sustain earning growth in the long term.