Firm will also expand its retail segment with new product ranges and services
By RAHIMI YUNUS / Pic By AFIF ABD HALIM
Seers Bhd, the latest Leading Entrepreneur Accelerator Platform (LEAP) listing, aims at bumping up its exports revenue from 5% to 30% within the next one year by expanding its overseas presence in Asia Pacific, especially regionally to Indonesia, Vietnam, Cambodia and Thailand.
“We will concentrate on the export markets after this listing,” inventor, founder and MD Ken Foo Kwok Hsing said after the company’s listing ceremony in Kuala Lumpur yesterday.
Foo said Seers is looking for local partners there to be either distributors or project dealers.
The Shah Alam, Selangorbased water heating maker began exporting its products last year to customers in Singapore, the Philippines and India, with revenue contribution standing at 5% combined.
Its sale volume — boosted by its signature hybrid hot water system, the world’s first ecofriendly hybrid technology with 12V power system — currently stands at 13 million to 15 million units annually.
Some 70% of sales in Malaysia are to the commercial segment, such as to property developers and 25% to hoteliers, with the remaining 5% to the mass consumers.
Seers, the eighth LEAP debutant to date, opened at 8.5 sen, or a half sen premium of its issue price of eight sen.
The counter rose by two sen, or 25%, to 10 sen at the close yesterday, with 2.1 million shares traded.
Seers raised RM5.15 million with the issuance of 64.4 million shares at eight sen per unit. It will have a market capitalisation of RM20.6 million based on the enlarged share capital of 257.6 million upon listing.
Some 57.3% of the proceeds raised, or RM3 million, will be for working capital and 25.2%, or RM1.3 million, for capital expenditure.
Seers is also seeking to expand its retail segment moving forward with new product ranges and services.
The new products are expected to be launched in the next six months, which include the “steamcrowave” (a microwave-like appliance using steam method); water softener and heater; as well as a rice cooker that can extract sugar from rice for the benefit of diabetic consumers.
For the financial year 2017, Seers registered revenue of RM9.3 million and a net profit of RM1.2 million.
The state of the property industry and consumer sector are two factors that could affect the demand of its water heating products, the company said in the information memorandum.
On the matter of the Sales and Services Tax, Foo expects manufacturers and consumers alike will adapt to the tax regime.