TT Vision bullish on semiconductor sector

TheStar Fri, May 10, 2019 09:20am - 2 years ago View Original


Low Boon Tat TT Vision Holdings Bhd executive chairman Goon Koon Yin (second from left), CEO Wong Yih Hsow (left) and executive director Jennie Tan observing the company's share price movements following its debut on the LEAP Market.

Low Boon Tat TT Vision Holdings Bhd executive chairman Goon Koon Yin (second from left), CEO Wong Yih Hsow (left) and executive director Jennie Tan observing the company's share price movements following its debut on the LEAP Market.

KUALA LUMPUR: TT Vision Holdings Bhd is aggressively increasing its efforts to penetrate more markets as it aims to ride on the growth of the semiconductor sector in the next three to five years.

The machine vision equipment manufacturer, which was listed on the LEAP Market of Bursa Malaysia yesterday, foresees that demand in the sector will be driven by many factors.

Executive chairman Goon Koon Yin said factors such as energy-efficient vehicle, 5G, Internet of Things (IoT) and artificial intelligence would be the demand drivers.

“Semiconductor as a whole is on a downside curve now but in the long run, it will go back to having fantastic growth.

“For us, we are not just in semiconductor. We also have big revenue contributions from photovoltaic and robotic businesses. Going forward, there will be multiple of technology-related industries that we can derive revenue from,” he told a briefing after the listing ceremony.

The company is looking at exploring markets such as South Korea, Taiwan and some European countries.

TT Vision debuted at 21 sen yesterday, a 16.7% premium from its issue price of 18 sen.

Goon said the group raised gross proceeds of RM7.2mil from the exercise, a bulk of which would be used for the expansion of its factory in Bayan Lepas, Penang, expected to be completed by the third quarter this year.

The balance of the proceeds will be working capital to support marketing and training, and for the initial public offering (IPO) expenses. This factory expansion will see an increase in floor space from 22,000 sq ft to 53,000 sq ft.

CEO and executive director Wong Yih Hsow said the plant is currently running at about 80% of its capacity, generating some RM30mil annually in revenue over the past years. The expansion is expected to at least double its annual revenue to RM60mil.

On TT Vision’s future, Goon said an upgrade to the ACE Market or the Main Market is in its plans but there is no set timeline for that.

Meanwhile, Malaysian Technology Development Corp Sdn Bhd (MTDC) CEO Datuk Norhalim Yunus said MTDC would continue holding its 29.55% stake in TT Vision as it planned to help grow the company further.

   

Executive chairman Goon Koon Yin said factors such as energy-efficient vehicle, 5G, Internet of Things (IoT) and artificial intelligence would be the demand drivers.

“Semiconductor as a whole is on a downside curve now but in the long run, it will go back to having fantastic growth.

“For us, we are not just in semiconductor. We also have big revenue contributions from photovoltaic and robotic businesses. Going forward, there will be multiple of technology-related industries that we can derive revenue from,” he told a briefing after the listing ceremony.

The company is looking at exploring markets such as South Korea, Taiwan and some European countries.

TT Vision debuted at 21 sen yesterday, a 16.7% premium from its issue price of 18 sen.

Goon said the group raised gross proceeds of RM7.2mil from the exercise, a bulk of which would be used for the expansion of its factory in Bayan Lepas, Penang, expected to be completed by the third quarter this year.

The balance of the proceeds will be working capital to support marketing and training, and for the initial public offering (IPO) expenses. This factory expansion will see an increase in floor space from 22,000 sq ft to 53,000 sq ft.

CEO and executive director Wong Yih Hsow said the plant is currently running at about 80% of its capacity, generating some RM30mil annually in revenue over the past years. The expansion is expected to at least double its annual revenue to RM60mil.

On TT Vision’s future, Goon said an upgrade to the ACE Market or the Main Market is in its plans but there is no set timeline for that.

Meanwhile, Malaysian Technology Development Corp Sdn Bhd (MTDC) CEO Datuk Norhalim Yunus said MTDC would continue holding its 29.55% stake in TT Vision as it planned to help grow the company further.

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