9/3/07 (The Star) - PENANG: Tejari Technologies Bhd, scheduled for Mesdaq listing today, plans to market its hydraulic systems to palm oil producers.

Group financial controller Kok Seng Loong said the group would set up sales and marketing offices in Singapore, Indonesia and Thailand by 2008 to market hydraulic systems under the Tejari brand.

Tejari manufactures software (such as programming modules) and hardware components (such as cylinders, actuators, power pack and pumps) of hydraulic systems for industries that require them to control the flow of fluid substances in their production processes.

Palm oil mills, steel mills, as well as oil and gas industries are some of the users of the hydraulic systems.

“Tejari supplies hydraulic systems to about 90% of the steel mills in the country.

“We now want to supply to palm oil mills and oil and gas industries in the country and overseas,” he told StarBiz.

Kok said to support the group’s overseas expansion plans, Tejari was setting up a RM4.5mil facility next to its existing plant in Juru Industrial Estate.

“Our current plant is over 90% utilised. The new plant, with 20,000 sq ft of production floor space, is expected to begin operations in the second half,” he said.

He said that so far this year, the group had secured RM1.5mil orders for its hydraulic systems.

It exports 10% to 15% of the systems to Singapore, Indonesia and Thailand, while the remainder is sold locally.

Kok said Tejari expected to increase its revenue by 15% to RM23.5mil in 2007 from RM20mil in 2006. 

“Our pre-tax profit is projected to rise by 23% to RM4mil in 2007 from RM3.5mil in 2006,” he said.

Tejari’s initial public offer will raise about RM11.2mil proceeds.

Of this, RM4.5mil will be used for new plant and machinery, RM1.2mil for research and development, RM1.8mil for working capital, RM1.3mil to settle bank loans, RM1mil for sales and marketing expenditure, and RM1.35mil for listing expenses.