HDM-Carlaw

Published a year ago on Star Biz

• Wednesday June 27, 2007
  
  HDM-Carlaw: Validation takes long time
  
  MD: This caused high trade receivables
  
  By DAVID TAN
  
  PENANG: HDM-Carlaw Corp Bhd’s high trade receivables last year was due mainly to the long process required by its Japanese customers to validate the new automated equipment from the group.
  
  For the financial year ended Dec 31, 2006, the company’s trade receivables swelled to RM9.2mil, while its revenue stood at RM6.25mil.
  
  Managing director Tong Keng Yoon said the validation process for the new automated equipment took six to nine months.
  
  “Presently, seven or eight units of our automated equipment, used in the paper and print industry, are being validated by our Japanese customers,” he told StarBiz after the company AGM on Monday.
  
  “The nine-month period is almost up, and we are confident of recovering the amount from our customers,” he said, adding that the group had no provision for the receivables.
  
  Tong said for the first quarter ended March 31, HDM-Carlaw’s trade receivables dropped slightly to RM8.6mil, as some payments had been settled. It recorded pre-tax profit of RM99,000 on revenue of RM1.4mil for the quarter.
  
  Listed on Mesdaq last year, HDM-Carlaw specialises in manufacturing automated equipment for the paper and print industry and medical examination gloves.
  
  Tong said he had firmed up orders from south Europe, Canada, Brazil, and the Middle East for the group’s automated equipment.
  
  “We are setting up a factory in Thailand next year to produce automated equipment for the paper and print industry. A company, Carlaw Paulzen Maschinenbau Ltd, has been incorporated in Thailand to run the factory.
  
  “Once the facility starts operations next year, it will help cater to the new orders from south Europe, Canada, Brazil and the Middle East,” he said, adding that the company had yet to work out the investment required for the plant.
  
  Tong said the group would be moving from its rented premises at the Prai Industrial Estate, where its production facility is currently located, to its own plant at the vicinity by year-end.
  
  He said sale of the group’s automated equipment for the paper and print industry contributed about 80% of its revenue.

The reason I brought this article up was that I wanted to get an idea on what HDM-Carlaw is doing.

Ok it has its problems with receivables.

Anyway, HDM-Carlaw announced its earnings last Friday: Quarterly rpt on consolidated results for the financial period ended 30/9/2008

Sales of ONLY 28k???? Forget that HDM had losses of 860k. The fact that it only managed a sales revenue of 28k for 3 months is shocking. Yes, HDM-Carlaw is a Messdaq stock.

This is what the company said in its notes.

• For the third quarter ended 30 September 2008, the Group recorded revenue and loss before taxation (“LBT”) of RM28,190 and RM860,097 respectively. There were no machines delivered during the quarter. The contribution in revenue for the period was from the continued sales of spare parts to customers in the paper and print industry

Not looking good! No machines delivered! Ouch!

HDM last traded at 6 sen.