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

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Worker dies in fall at Formosa Texas plant

April 23, 2014 4:04 pm ET

A subcontractor died April 22 after falling 25 feet during routine cleaning operations at a Formosa Plastics Corp. USA facility in Point Comfort,...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for...    More

Clariant says Asia holds the key to growth

April 23, 2014 3:52 pm ET

Clariant AG is based in Switzerland, but its eyes are firmly focused further east.    More

Sale of Romanian PVC producer Oltchim assets postponed again

April 23, 2014 1:35 pm ET

The long anticipated privatization of insolvent Romanian PVC producer Oltchim has been postponed yet again, this time until mid-May.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events