Press Release 2013

PRESS RELEASES

 
 
 
Yee Lee in the mood to expand

Yee Lee in the mood to expand

Firm has allocated RM36mil for capital expenditure this year

Petaling Jaya: Consumer counter Yee Lee Corp Bhd has allocated RM36mil for its capital expenditure this year to expand its business while continuously looking to add products to its distributorship port-folio.

Executive director and group general manager Chok Yin Fatt said it had allocated RM20mil for its packaging business, maily to expand the efficiency of the aerosol can production machineries, while RM16mil hab been set aside for its plantation division.

"We are exploring the feasibility of developing a parcel of undeveloped land in Sabah into an oil palm plantation,” he told StarBiz.

He declined to reveal the details, however, as the study was still in its initial stages.

According to Chok, the trading division was its biggest revenue contributor, providing 65% of the group’s total revenue, followed by 22% from its packaging division, 12% from its palm oil refinery and mill and 1% from its other business, including plantation division.

"We are always searching for good brands to enlarge our product range under the trading division. We look at products which are synergistic to our existing products and distribution points,” he said, adding that the company had a sales network of nine branches in the peninsula and six in Sabah and Sarawak.

The 15 sales branches would serve its distribution points, including petrol kiosks, supermarkets and grocery stores across the nation.

Based on Bursa filings, revenue from its trading division decreased by 12% in the first quarter ended March 31 compared to the preceding corresponding quarter, mainly due to the discontinuation of the distributorship of Procter and Gamble products in September 2012.

However, the trading division managed to achieve a higher unaudited pre-tax profit of RM3.38mil in the said quarter compared to a loss of RM400,000 in the previous year due to better profit margin as well as lower advertisement and promotion expenses.

In a report, Kenanga Research said the turnaround in its trading division was a catalyst not to be under-estimated.

Yee Lee’s main products include the Red Eagle cooking oil, Vecorn corn oil and Sunlico sunflower seed oil. Its also has a 32% stake in bottled mineral water producer Spritzer Bhd.