Pan Merchant maintains plans for global growth
Pan Merchant Bhd executive director Wong Nyeon Thiat.
KUALA LUMPUR: Despite ongoing geopolitical tensions, Pan Merchant Bhd, a provider of solid-liquid filtration solutions, says its international expansion plans remain on track, particularly in the US and European markets, as its core business remains stable and resilient.
The company's executive director Wong Nyeon Thiat said the company does not see any significant impact from the uncertainty as the business has remained consistently stable.
'The other industries that we are looking at are the renewable energies, where used cooking oil or used oil is refined for further processing into sustainable aviation fuel. We see potential growth in these areas.
'In Europe and the United States, this industry is a growing because it is very much policy-regulated. With countries adopting all renewable energy, a lot of these projects are coming on stream again,' Wong told a press conference in conjunction with its listing ceremony yesterday.
At 9am, the company made its debut on the ACE Market at 23.5 sen, a 3.5 sen discount over its initial public offering price of 27 sen, with 187,600 shares traded.
Various factors, including the conflicts, policy uncertainty, and tariffs affected the opening price, Wong said.
'But we believe the market will soon recognise Pan Merchant's long-term potential and this will be reflected in our share price,' she said.
On the effects of US tariff on the company, managing director Wong Voon Ten said the impact so far has been insignificant because most of its revenue is from Malaysia.
'We typically compete with European peers. So the net effect is only about 4%, which is very manageable for us, especially since we enjoy strong margins on our products entering the US market.
'We produce quality equipment at competitive Malaysian and Asian price levels, which gives us a healthy margin in the United States,' he said.
The company said, as of May 6, its order book was worth RM69.6mil, comprising orders for filtration equipment, replacement parts, and steel works, which are expected to be fulfilled within the next 12 months.
Wong said the order book comprises three segments, edible oil, sustainable fuel, and water, with the company planning to grow other sectors, with a particular focus on water as its main area of expansion.
'Over the next one or two quarters, we are looking at several promising projects, both locally and across Asia Pacific. We are moving into mining as well, and one recent initiative is our participation in mining exhibitions, such as in Kazakhstan, where we see strong potential,' he added.
The company believes mining activity will continue to grow in Central Asia, while Kazakhstan, Australia, and Indonesia already have significant mining operations. It is making efforts to enter and expand in these markets. — Bernama
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