Hong Kong's Ngai Hing Hong sees recovery continue

By Steve Toloken
Staff Reporter / Asia Bureau Chief

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

Related to this story

Topics Materials, Materials Suppliers, Compounding

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
Staff Reporter / Asia Bureau Chief

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

Post Your Comments


Back to story


More stories

McCann expanding in Ohio

December 17, 2014 11:59 am ET

Compounding firm McCann Plastics will spend $1.2 million on an expansion project that will create 15 new jobs at its plant in Green, Ohio.    More

French firm acquires Zimmer-brand polymer technology

December 15, 2014 4:18 pm ET

The deal includes technologies for the processing of polyesters and nylons, and approximately 40 researchers and engineers.    More

Image

Bioplastics global production capacity

December 15, 2014 10:14 am ET

   More

Image

Israeli compounder building $13.1 million facility in North Carolina

December 12, 2014 1:14 pm ET

Tosaf USA, a subsidiary of Kfar Yona, Israel-based Tosaf Compounds Ltd., will build a compounding and masterbatch production facility in North...    More

Image

PPS resin maker Lumena cuts production after ‘difficulties’ with banks

December 12, 2014 11:47 am ET

Polyphenylene sulfide resin maker China Lumena New Materials Corp. said it’s having difficulty “maintaining the continual support” o...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events