Under the Radar: How far is precision manufacturer Fu Yu Corporation seeing the green shoots of growth post-strategic review?

The Evening Runway with Hongbin Jeong, Roshan Gidwani and Chua Tian Tian

Today we’re going to talk to a Singapore listed company that is said to be the country’s oldest and one of Asia’s largest manufacturers of high-end precision plastic and metal components and products.

With over 45 years of manufacturing experience, our guest Fu Yu Corporation operates six manufacturing sites across Singapore, Malaysia and China.

The firm serves a wide range of sectors including automotive, biomedical and consumer products, making products such as water filters, medical endoscopes and more. More notably, the company also expanded its offering to provide supply chain solutions at the height of the pandemic in 2021.

But why are we talking about Fu Yu Corporation you might ask? Well, the firm had in November last year completed a strategic review where it outlined new transformation strategies to build a stronger business foundation, open up new business opportunities and enhance shareholder value.

That’s amid an economic slowdown in China, rising interest rates globally and customers holding large stockpiles of inventory post-pandemic.

To this end, the firm said then that it has doubled down on investments on machinery and manpower to manufacture higher precision products such as plastic lenses for electric cars and other biomedical products – but why is it moving up the value chain – and how far have the investments reaped rewards now that we are in 2024?

Meanwhile, Fu Yu Corporation posted a net profit of S$5,200 for the first quarter of its 2024 fiscal year ended March, marking a reversal from a net loss of S$2.4 million seen in the same period last year.

The showing comes as revenue in the quarter more than doubled on the year to nearly S$79 (S$78.9 million), driven by higher contributions from the company’s supply chain services management arm.

Question is – what are the trends bolstering demand for the firm’s supply chain management services? Also – where would Fu Yu Corporation then put its resources into to tap future growth in future?

On Under the Radar, The Evening Runway’s finance presenter Chua Tian Tian posed these questions to David Seow, Group CEO of Fu Yu Corporation Limited.

See omnystudio.com/listener for privacy information.