Hong Kong's Ngai Hing Hong sees recovery continue

By Steve Toloken
News Editor / International

Published: February 26, 2013 1:35 pm ET
Updated: February 26, 2013 1:38 pm ET

Related to this story

Topics Materials, Compounding, Materials Suppliers

HONG KONG -- Hong Kong compounder Ngai Hing Hong Co. Ltd. said a continued shift away from exports and toward the mainland China market, along with some recovery in the United States, pushed sales up 12 percent in the second half of 2012.

Sales rose to HK$923.9 million (US$119.0 million), with the company reporting a small profit of HK$5.9 million (US$760,000) in the period, allowing a modest recovery it said began in the first half of 2012 to continue. It remained troubled by weak sales in Europe and general economic uncertainty, though.

''The global economy was still clouded by uncertainties,'' the company said in a Feb. 25 filing to the Hong Kong Stock Exchange. ''However, the group's well-planned market expansion coupled with a strict cost control strategy enabled the improvement in business performance to continue.''

Driving the improvement, the company said, was growth in the mainland Chinese market. China accounted for 46 percent of sales in the second half of 2012, a sizable jump compared with 39 percent in the second half of 2011.

The company said it continued investments there. It bought office space in Chongqing in December, replacing leased space and becoming headquarters for its push into Western China and the heavy industry base there.

''Spurred by the Chinese Central Government's policy to stimulate domestic consumption, the group has managed to further expand its market in Mainland China,'' the company said. ''The group will continue to focus there, with the aim to lift the proportion of its total revenue from China to 50 percent.''

Broken down by specific business, the company's colorants, pigments and plastic compounding business performed best, growing 21 percent in sales to HK$211.6 million (US$27.3 million), particularly in East China, led by demand in packaging, automotive and an emerging personal healthcare business.

Its engineering plastics business struggled, with sales down 13 percent to HK$105.6 million (US$13.6 million), on weakness in export markets in the United States and Europe. But it said the unit remained profitable.

And its plastics trading business saw sales rise 14 percent to HK$605.4 million (US$78.0 million), although the company said that business had not recovered enough from the global slowdown to become profitable.

Globally, it suggested that markets were mixed, with slowness in Europe and North American hurting some business. Beyond the positive effects it said it saw from the Chinese government's policies to stimulate domestic demand, it said additional quantitative easing by the United States was helping in the short-term.

''In the overseas markets, the introduction of the third round of quantitative easing by the U.S. government had a positive impact on the global economy, particularly the US market,'' the company said. ''The peak holiday sales season from U.S. Thanksgiving Day to Christmas has also driven demand from the export market for products of certain business segments of the group."

Ngai Hing Hong's fiscal year ends June 30.


Comments

Hong Kong's Ngai Hing Hong sees recovery continue

By Steve Toloken
News Editor / International

Published: February 26, 2013 1:35 pm ET
Updated: February 26, 2013 1:38 pm ET

Post Your Comments


Back to story


More stories

Image

Oxford Polymers adds compounding capacity

January 30, 2015 1:16 pm ET

Materials maker Oxford Polymers has increased its compounding capacity by installing a new single-screw extrusion line.    More

Image

Marval's next generation expands capacity

January 30, 2015 1:27 pm ET

MAMARONECK, N.Y. — There’s a lot of history at Marval Industries Inc., but the 59-year-old compounding firm also is looking toward the...    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

2014 sees modest sales increase, but profit decrease, for Dow Chemical

January 29, 2015 4:20 pm ET

UPDATED — Dow Chemical Co. delivered modest sales growth in 2014, but the firm's profit took a tumble.    More

Image

Resin prices continuing to tumble

January 29, 2015 2:24 pm ET

The ongoing slide in crude oil prices is taking commodity resin prices down as well.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events