KUALA LUMPUR, July 25 ― Heng Huat Resources Group Bhd debuted on the ACE market of Bursa Malaysia at 61 sen, for a premium of 16 sen, over its offer price of 45 sen.

The integrated manufacturer of oil palm and coconut biomass products in Malaysia, aims to increase group's revenue by 10 per cent by year-end, driven by its robust performance in the first quarter of 2014.

Executive Director Lim Ghim Chai said the company expected revenue to grow, driven by increased demand in China.

“So far, export sales to China contributed almost 50 per cent of the group's revenue and we will focus only in the China's market,” Lim said, adding that the company was planning to establish a subsidiary company in Southern China.

“By setting up a subsidiary, it will lead to a positive increment in revenue and currently we have 10 intermediate companies in China,” Lim told reporters after the company's listing on the local bourse.

For the first quarter ended March 31, 2014, Heng Huat's revenue increased to RM21.319 million from RM16.102 million recorded in the same period last year.

Pre-tax profit improved to RM3.750 million from RM3.002 million previously.

Heng Huat raised RM20.93 million from the listing exercise, of which, RM4 million would be used for capital expenditure.

It will allocate RM3.20 million out of the capital expenditure or extension of production facility through the construction of a new production facility, situated in Seberang Perai Selatan, Pulau Pinang.

“We have two coconut fibre production lines, 20 oil palm empty fruit bunches fibre production lines, two briquette production lines and three coconut fibre sheet production lines,” it said.

Out of the listing proceeds, RM4.55 million will be utilised for working capital while the remaining RM9.38 million and RM3.0 million will be used for the repayment of bank borrowings and listing expenses, respectively. ― Bernama