Malaysian aircraft parts maker ready for take-off

Group chief executive officer Jeffery Goh Wee Keng said the nacelle beams – housings for the plane’s engine or fuel systems – are now undergoing prototype qualification by the customer.
“We are producing in Bukit Minyak half of the nacelle beams for the Pratt & Whitney engine used in the new Airbus A320neo aircraft,” he says. Samee has also secured projects for the Boeing 787, Airbus A350XWB, Airbus320ne and Boeing 737max.
“We’ve started delivery of various components for the Boeing 787 and Airbus A350XWB,” he said.
“For the Airbus 320neo, we have started delivery of the casings, while delivery for Boeing 737max has not started yet.” 
Goh says the Bukit Minyak production facility will eventually be equipped with nine machines.
Goh said the group was looking at investing more in the facilities in Bayan Lepas and Bukit Minyak.
“The aerospace segment of the group would likely receive a higher allocation,” he said.
Goh said Samee has started delivery of the casings for the Airbus 320neo. 
For the 2017 financial year ended March 31, Samee invested 82.8 million ringgit for the group operations, of which 78 million ringgit was spent for the aerospace business.
“Next year, when the new plant ramps up production, we can see the contribution from aerospace moving up,” he said.
The group has projected that its revenue from the aerospace industry would account for about 60 per cent of its 2018 revenue, which should remain stable.
On the slowdown in orders for the Airbus380, Goh said Samee makes only casing for the aircraft. “The impact is minimal as the orders for the new projects are picking up. Currently, the orders for AirbusA380 are at low production rates.” .
On the equipment business, Goh said the group had enlarged its presence in the front-end semiconductor sector, reducing the contribution from hard disk drive test equipment.
“We are now doing more work on making components for equipment used in front-end semiconductor manufacturing,” he added.
On the group’s first quarter for the 2018 financial year ended June 30 2017, Samee posted 13.2million ringgit in profit before tax on the back of a 133.4 million ringgit revenue, compared to 10.8 million and 27 million in the previous year.
Samee’s revenue for the first quarter was lower at 133.4 million ringgit, compared to 156.2 million in the fourth quarter of the 2017 financial year.
“The decrease to the contraction in revenue from the aerospace and equipment manufacturing segments by 12.8 million ringgit and 10.0 million ringgit respectively as a result of lower demand from customers during the quarter,” he said.
“We expect the revenue from the aerospace industry which accounts for about 62 per cent of our group revenue to remain stable.”