Eckem Sees Strong Demand For Its Industrial Chemicals Amid Data Centre Boom
KUALA LUMPUR, July 3 (Bernama) -- Eckem Holdings Bhd expects demand for its specialty industrial chemical products to remain resilient, supported by the rapid expansion of artificial intelligence (AI)-driven data centres.
Executive director Jack Tan of the industrial chemical distributor said the ongoing data centre boom would continue to benefit the company’s customers in the construction sector, particularly those involved in paints and waterproofing materials.
“With the current AI and the data centre boom, we believe that our customers will continue to do well and contribute positively to our business results as well,” he said during the press conference after the company’s ACE Market listing here today.
At the opening gong, the company opened flat at 12 sen on its ACE Market debut on Bursa Malaysia, unchanged from its initial public offering price, with 12.18 million shares traded.
Tan said the company was nevertheless encouraged by the opening share price and expressed appreciation for the support from both institutional and retail investors.
Meanwhile, chief operating officer David Tan said Eckem expects healthy demand from markets abroad despite rising operating costs.
“Our products are very niche technical products exported to Australia, Europe and North America. These items are still in good demand. So the growth can cover the negative impact that it has on our manufacturing,” he said.
The company is not prioritising expansion into Sabah and Sarawak in the near term. Its immediate focus remains on strengthening its presence in markets abroad.
Riding on the favourable demand outlook, Jack said Eckem plans to double its manufacturing capacity over the next 12 to 24 months post-listing.
“One of our key targets is to expand our manufacturing capacity. We are hoping to double our capacity so that it will also contribute positively to our revenue and profit,” he said.
On the business environment, Jack said geopolitical uncertainties, pricing pressures and supply stability remain among the company’s key challenges this year.
“We are trying to stabilise prices and supply. With the war seeming to ease, it should bring a positive impact to the company’s profit and loss,” he said.
-- BERNAMA