Kanger assures business stable

BUKIT JALIL: Kanger International Bhd has assured that its bamboo flooring business remains stable with good financial performance despite the sharp fall in its share price recently.
Managing director Leng Xingmin said it expects an improvement in its performance for the financial year ending Dec 31, 2015 (FY15) compared with FY14, driven by growth in its export markets, the expansion of its product portfolio to include bamboo furniture, as well as the opening of more distribution outlets.
Kanger was issued an unusual market activity query on May 19 following the fall in its share price and high trading volume. The company had said then it was not aware of any development that may have contributed to the sudden spike in trading volume and dip in share price.
Kanger's share price closed down half a sen at 15.5 sen yesterday, representing a 62% drop from just April 6 where it had been trading at 40.5 sen apiece.
"The company's business performance and financial results have been stable. I can only use our financial results to give (shareholders and users) the confidence (in the company)," he spoke to SunBiz after its AGM yesterday.
He said Kanger is the only listed bamboo flooring producer in the world and it has been approached by many big clients for orders. Kanger's export sales, to countries like Netherlands, Russia and Iran, stood at 67% in FY14.
"We're talking to a new client from the US and so far it's the biggest (in terms of orders)," said Leng.
He also revealed that Kanger's products, such as bamboo flooring and bamboo furniture, will be sold in Malaysia in the second half of this year. The company is still finalising details of its plans.
The Chinese government's initiatives of developing its commercial reach to the western region and the construction of 36 million affordable houses in the next five years, is also envisaged to uphold the performance of the construction industry, which in turn is expected to have a positive effect on the bamboo flooring market.
The bamboo flooring market, especially in China, is valued at RMB3.37 billion (RM1.99 billion) in 2012 and is expected to grow at a compound annual growth rate of 8.4% for the next five years to RMB5.04 billion (RM2.98 billion) in 2017.
ACE Market-listed Kanger believed it is strongly positioned in the industry to capitalise on the anticipated growing demand for its products.
For FY14, Kanger's net profit rose 41% to RM7.02 million compared with RM4.96 million in FY13, while revenue increased 33% to RM66.72 million from RM50.18 million a year ago.