Polymer??Link Holdings Bhd is setting its eye on the US market with discussions with potential customers underway, including plastic products manufacturers.
Group MD and CEO Eddie Koh Song Heng said the company also plans to strengthen its position in its traditional markets, mostly in the Philippines.
???A lot of powder has been sent to potential customers in the US for trials. The response has been positive and we are currently discussing cost and logistical matters with one of them,??? Koh said after the listing of the company on the ACE Market last Friday.
Polymer Link is planning to set up a new warehouse in Wisconsin, US, to secure targeted plastic products manufacturers that use rotational moulding.
However, the plan is still at an early stage with no additional details provided.
The warehouse will also be the company???s base to supply new customers in Canada.
Polymer Link also targets to penetrate Thailand, Papua New Guinea, Australia, New Zealand, China and India in the future.
Established in 2014, Polymer Link currently has two factories, one in Klang, Selangor, and another is Clark Free Port in the Philippines.
Polymer Link???s compounded plastic powder is used by plastic manufacturers to make products such as insulated boxes, bins, water tanks, kayaks and playground equipment.
The company debuted at 15 sen, up 25%, or three sen premium of its 12 sen offer price. The counter closed the trading day up 33.3%, or four sen, to 16 sen last week.
The company raised RM5.5 million, of which approximately 51.4%, or RM2.9 million, has been earmarked for working capital including marketing activities to support business expansion.
Other plans include expanding product range by manufacturing filler, colour and additive masterbatch.
For the financial year ended 2017 (FY17), Polymer Link made a revenue of RM41 million and a net profit of RM4.3 million.
The Philippines is the largest market which contributed 90.6% to the revenue in FY17, followed by Malaysia at 6.8% and others with less than 3%.
Its major customer is Outback Philippines ??? an insulated boxes producer for a US-brand owner on an original equipment manufacturer basis.
As current business is highly dependant on Outback Philippines, Polymer Link intends to expand the Malaysian market by working with local plastic manufacturers to supply compounded plastic powder and pellets, as well as penetrate another markets like the US.
Polymer Link is the sixth company listed on the LEAP Market, a capital-raising platform for small and medium enterprises, launched by Bursa Malaysia in July last year.
Malaysia is the first country in the region to introduce such a market that allows only sophisticated investors ??? high-net-worth entities or individuals to invest in the listed companies.