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Thursday, January 17, 2008

Signature targeting residential market

Second board-bound Signature International Bhd targets a year-on-year growth of between 11 and 20 per cent in net profit and revenue.

Signature, which makes kitchen and wardrobe sets, plans to bid for projects in the property sector, targeting the residential market, its founder and managing director K.C. Tan told Business Times.

TAN: We will keep expanding

"We have bid for RM50 million worth of contracts in Malaysia and RM50 million overseas. The success rate varies from project to project, but we are quite confident of getting a fair bit due to our past achievements," he said.

Tan said the new contracts will boost Signature's order book of about RM50 million currently.

Based on its prospectus, Signature expects to post revenue of RM94.7 million and net profit of RM13.2 million for the 12 months ending June 30 2008.

"We will keep expanding to countries which we feel have the right potential," Tan said.

To spearhead growth, Signature is setting up retail showrooms overseas, targeting Pune in India and Maldives, within the next one year, and one in Bandar Sunway, Selangor, by March.

At present, it operates 22 retail showrooms in the country and seven overseas.

The company, which has a factory in Kota Damansara, Selangor, producing 4,300 kitchen and wardrobe sets a year, plans to operate a second factory in the same area, which will help improve its production rate by 30 per cent.

Signature, scheduled to debut on Bursa Malaysia next Wednesday, aims to raise RM22.11 million from the listing exercise, which will be used for working capital and to build the new factory.

Its public offer involves the issuance of 17.7 million new shares of 50 sen each at an issue price of RM1.25 per share and an offer for sale of 2.1 million shares to selected Bumiputera investors.

By New Straits Times (by Sharen Kaur)

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