How a small auto-parts maker reinvents itself to grow: AIC's shift to another sector proves nimble firms can find lucrative niches in current climate
Article Abstract:
Malaysian auto-parts maker AIC Corp. was able to survive the Asian economic crisis by diversifying into the semiconductor manufacturing sector, giving the company the much needed profitable niche business in times of economic troubles. The decision of AIC to diversify into the semiconductor manufacturing business came out of their projections that the Malaysian automobile industry will have to compete internationally, a condition that might squeeze the profits from their operation. Semiconductor manufacturing accounted for 60% to 65% of the company's revenues in 1998, with its auto parts business contributing only 10% to 15%. The 1998-1999 projections anticipate an operating profit of $10.5 mil for the company, with semiconductor manufacturing accounting for 75% of the total.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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CSM's prospects brighten
Article Abstract:
Strong global demand for Chartered Semiconductor Manufacturing's (CSM) chips has encouraged the firm to push through with its stock listing in the US and Singapore in the latter part of 1999. CSM's move is in contrast to other firms' cancellation of their planned share offering. In addition to strong demand, the earthquake that shook Taiwan in Sept 1999 has also boosted the stock of CSM due to production stoppages in the semiconductor industry of Taiwan. However, many investors are convinced that CSM cannot sustain its run in the long-term.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
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MPI can weather fear over ringgit, brokers argue
Article Abstract:
Financial analysts remain convinced that the securities of semiconductor firm Malaysian Pacific Industries (MPI) will perform well despite the ongoing currency devaluation of the region. Investors are confident of the firm's performance for the fiscal year ending June 30, 1999 which is predicted to post some 20% in earnings in the coming years. The firm, which has majority of its sales in dollars, would likely benefit from the ringgit's decline in value. However, economic uncertainty is preventing most businessmen from investing.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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