Batu Pahat, 20 May 2016 – BPPLAS, having transformed from a small cottage industry to one of the largest Polyethylene Film Manufacturers in Malaysia, celebrated its Silver Jubilee milestone on 13th June 2015.

In the midst of a challenging and volatile business environment, and the Goods and Services Tax (“GST”) implementation that impacted unfavourably on the domestic market in 2015, the Group had achieved the highest PAT of RM21.83 million since its listing on the Main Board of Bursa Malaysia Securities Berhad in FY2005 as compared to PAT of RM10.07 million in FY2014 due to lower raw material costs, favourable foreign exchange gained from export sales, better product mix and higher process efficiencies.

Demand from advanced and regional economies remained modest in 2015. The Group has focused its efforts to participate in the world’s highest growth market of Asia-Pacific regions whilst maintaining its presence and strength in domestic market despite the adverse impact of GST. This resulted in the Group’s success in lifting its export sales to 79% in FY2015 as compared to 78% in FY2014. Majority of our products are exported to Asian regions, with Japan remaining as our top exporting country. Our ratio of cast stretch film and blown packaging film products remained relatively stable at 75% and 25% respectively. Earnings Per Share was higher at 11.67 sen in FY2015 as compared to 5.55 sen in FY2014. Return On Equity was also higher at 13.7% in FY2015 as compared to 6.5% in FY2014.

In February 2016, the Group has adopted a Dividend Policy to distribute at least 40% of PAT to reward our shareholders annually. The total sum of dividends declared (special, first and second interim dividends) and paid out for FY2015 amounted to RM 15,012,240 representing 68.8% of PAT in FY2015.

The Group has successfully installed and commissioned a brand new 3-metre Cast Stretch Film machine with the new capability to produce innovative and better quality products in FY2015. This has allowed the Group to further enhance its supplies and market position since the machine became fully operational in last quarter of 2015. The Group will be investing in an additional brand new 3-metre Cast Stretch Film machine with RM14 million investment and expects this machine to be operational in 4th Quarter 2016. The additional capacity expansion will increase our total name plate production capacity from 78,000 metric tons per annum currently to 88,000 metric tons per annum, allowing the Group to achieve greater efficiency to serve the increasing packaging demand from existing customers in the fast growing Asia-Pacific regions and also new potential customers arising from the concluded Malaysia Free Trade agreement markets. The Group will use its healthy cash position for this capacity expansion project.

At BPPLAS AGM held earlier today, Mr. Lim Chun Yow, the Managing Director also shared that the first quarter results of FY2016 have been announced via BursaLink. In the 3 months ended 31 March 2016 the Group achieved higher operating revenue of RM85.36 million, an increase of 27.69% compared to RM66.85 million in the corresponding period last year. The Group achieved a higher unaudited PBT for the period under review of RM7.58 million, an increase of 64.78% compared to unaudited PBT of RM4.60 million in the same period last year due to higher sales volume from export market. Unaudited PAT for the period under review was also higher by 69.50% at RM5.78 million, compared to the unaudited PAT of RM3.41 million in the same corresponding period last year. Mr. Lim further shared that based on the first quarter performance for FY2016 the Board of Directors has declared a first interim dividend (Single-Tier) of 4% (2 sen per share) in respect of FY2016. The entitlement date is fixed on 10 June 2016 and payment will be made on 24 June 2016.

The Group is optimistic that the continued capacity building, cost optimisation, process efficiency and continuous pursuit on innovation to introduce new products would help the Group to strengthen its product mixes, improve existing market coverage and achieve higher sales in the years ahead.

For further information, please contact:
Gavin Tan
BP Plastics Holding Bhd.
Contact: 607-455 7633
e-mail: Gavin.Tan@bpplas.com