LCTH To Fulfil High Dividend Payout Of 7.6 Sen For 2005...

KUALA LUMPUR, Oct 25 (Bernama) -- LCTH Corporation Bhd, the manufacturer and assembler of precision plastic parts and components, will fulfil its promise to shareholders and make a high dividend payout of 7.6 sen for calendar 2005.

Last year, the company rewarded shareholders with a 8.56 sen dividend per share.

"The company's fundamentals are good and business prospects bright" despite skyrocketing crude oil prices which might affect our turnover and after-tax profit this year, Lim Shook Kong, LCTH's group general manager, said Tuesday.

LCTH, listed last November, recorded a pre-tax profit of RM67.07 million and a revenue of RM262.74 million for FY2004.

Its products are widely used in home appliances, medical devices, telecommunication products and peripheral and office automation products.

One major positive aspect in LCTH's business is that about 86 percent of the group's revenue is derived from customers that service Hewlett-Packard, which manufactures computers, notebooks, printers and electronics products.

For instance, Flextronics is a contract manufacturer to HP and is among our major clients and "this linkage has been consolidated over the long-term," he told Bernama in an interview.

"We also have a safe product mix as a significant portion of LCTH's revenue is derived from plastic parts for printers and related equipment," said Lim.

Explaining the coming onstream of its new RM120 million plant at the Johor Technology Park, he said, the production capacity has been increased by 40 percent particularly with the consolidation of activities.

"We have been put in tool and die, moulds and fabrication division which is part of the integration for the plant to act as a one-stop centre," he said.

Design and fabrication of moulds and dies are natural extensions of the LCTH Group's services to provide higher value and convenience to its customers.

He said the plant would enable LCTH to control quality, achieve faster turnaround and interact with customers directly in the design and specification of products and in the process help raise growth and expand business.

On expectations of auto parts and components supply to major firms such as Proton, Perodua and Naza vehicles becoming a major contributor to LCTH's revenue, he said: "Plans are in the pipeline as the company has obtained the QS9000 certification ready for the automotive business. Yes, we have plans to this end."

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