ASIA FASHION clinches RM381 m contract from large petrochemical group

Neo Chee Beng, executive chairman of Asia Fashion, with CFO Jimmy Ng. NextInsight file photo.The Group has turned around in FY2014 with a revenue of RMB446.0 million and  and net profit after tax attributable to shareholders of RMB15.7 million, respectively, thanks to its acquisition of Xuzhou Zhongwei through Rich Circles Enterprise on 12 June 2014. 

Prior to its new material business, Asia Fashion had a fabric business which has been disposed of in February 2015.

Mr Neo Chee Beng, Executive Director of Xuzhou Zhongwei and Executive Chairman of Asia Fashion, said: “Apart from us having a strong conviction in the exceptional qualities of our products, this contract from Baota represents a strong vote of confidence in our capabilities.

"While we are gaining pace in the construction material market, we aim to harness opportunities from the RMB1 trillion market to continue our growth momentum. With a cautiously optimistic view of our construction material business, we hope to leverage on our first-mover advantage with our patented products and technologies to advance beyond our current sphere of network.”

The stock traded recently at 5.6 cents for a trailing PE of about 9X and a market cap of S$35.7 million.