CHTC Fong’s Industries Co. Ltd. (00641.HK) believes its profit margins will get a boost from the acquisition deal for Austrian coating machines manufacturer Timatec.
Timatec possesses pioneer coating technology that helps the firm enjoy gross margin of over 30 percent on its products, said Ji Xin (冀新), the chief executive of CHTC Fong’s Industries.
By acquiring the firm, CHTC Fong’s will be able to enhance its earnings while also gaining control of a cutting-edge clothes coating technology, Ji told the Hong Kong Economic Journal.
CHTC Fong’s current gross profit margin is in the 20 to 25 percent range, according to Ji.
The company is acquiring Timatec through a subsidiary, Monforts.
CHTC Fong’s aims to boost sales of textile machinery and products following the acquisition. The target is to make the segment account for over 50 percent of the overall sales.
The company expects to sell about five Timatec machines next year and 10 to 20 units in the medium term. The products are priced in the range of 700,000 euro to 2.4 million euro (US$768,327 to US$2.63 million) per unit.
– Contact us at [email protected]