CAB Cakaran on track to achieve RM1bil revenue this fiscal year
SEBERANG JAYA: CAB Cakaran Corp Bhd is on track to achieve RM1bil in revenue this fiscal year ending Sept 30, 2016.
Group managing director Chris Chuah (pic) told StarBiz that the group had achieved a revenue of RM521mil for the six months of the 2016 fiscal year ended March 31.
“We expect the net profit to improve also due to better sales of broiler meat and improved efficiency in the management of our breeder and broiler farms,” Chuah added.
The group posted RM20.9mil in net profit or 2.3% of RM891mil turnover last year.
“For the last six months, the demand from the domestic market and from Singapore has improved by a double-digit percentage compared with a year ago.
“Our subsidiary in Singapore, Tong Huat Poultry Processing, has benefited from the growth in demand, and is expected to generate about 10% of group revenue for the 2016 fiscal year.
“Our company in Johor, CAB Cakaran Sultan Sdn Bhd, which started operations late last year, has also contributed recently.
“The Johor company serves the Johor and the Singapore markets,” he said.
According to Chuah, the joint-venture (JV) company with Salim Group in Jakarta would be ready in two months.
“In early 2017, the new JV company would undertake the construction of the planned integrated halal poultry hub, scheduled for completion in 2018,” he said.
Meanwhile, Chuah said it planned to start its power-generation business in 2018, although the plan to partner with a Japanese company to implement the project did not work out.
“We will consider alternative technologies from Europe and China. CAB is finalising its purchase of the land in Gurun, Kedah, and expects to apply to the Sustainable Energy Development Authority next year.
“The group is planning for the biomass facility to occupy a 30-acre site, which will take 18 months to set up. Sixty acres more will be taken up by a solar farm, while a 10-acre site will be used as a buffer zone,” he added.