SAMURAI 2K Aerosol: Achieving Its Digital Transformation Vision
December 05 2022 - 4:30AM
JCN Newswire
Listed on the Catalist Board of the Singapore Exchange, SAMURAI
2K Aerosol Limited (Stock Symbol: Y8E.SI) is a leading aerosol
coating specialist focusing on high performance coating solutions
for the automotive refinishing and refurbishing industry.
Headquartered in Malaysia, its products are manufactured in the
production facility in Johor, and distributed in countries
including Malaysia, Indonesia, Thailand, Philippines, Vietnam,
Cambodia, United Kingdom, United States of America, Singapore, and
India.
Transformation for the Future
Founder and CEO, Ong Yoke En's crystal clear vision for the
transformation of the Group is beginning to take shape. The aim is
to build a strong digital platform by integrating online and
offline business to create an omni-channel experience for its
customers. The Group will transform from a product-driven business
model to a data-driven service-oriented business model.
On 10 October 2022, SAMURAI 2K was handed the keys to 4 units of
5-storey shophouses for its new corporate office in Johor,
Malaysia. This is a total of 20 units of 1700 sq ft each and marks
another milestone in SAMURAI's digital transformation focused on
innovation through leveraging on AI and data analytics. Digital
content creation and technical support staff strength is expected
to grow to 150-200 in 3 years.
Operating expenses for the build-up of digital infrastructure is
already reflected in 1HFY2023 ended 30 September Financial
Statement available on SGXNet at
https://links.sgx.com/1.0.0/corporate-announcements/K8EDQT0VA6E8IE01/abcc2506b2fcf5f3d0684b32052a6f39dc827ac20d143367b3336f75857910f0
The Financial Statement shows marketing and distribution expenses
increasing by 206% from RM2.36 million in 1HFY2022 to RM7.23
million in 1HFY2023.
Said Samurai 2K spokesperson Leo Aun Foo, "Initially our ecommerce
business will focus on the Malaysian and USA markets. Subsequently
we will roll out plans for Europe, Australia, Japan, and South
America. Each country will require a team of 5-10 staff to
handle".
It is with the online multi-country platform that the Group will be
able to reap economies of scale, accelerate brand building, provide
consumers with multi-media experience, create customer loyalty, and
optimize business and product development through powerful data
analytics.
Pipeline of Innovations and Inventions
The Group is targeting to launch the first-ever color mix-and-match
system ("Tintatek" technology) of aerosol spray paint, which allows
users (especially automotive consumers) to custom fill their
desired colors into the aerosol can without the use of a
complicated tool or equipment. Using Tintatek's color data bank,
millions of color combinations can be generated. Users can create
original color for themselves or re-create and perfectly match the
original factory paint color of the object to be painted. The
introduction of Tintatek into DIY spray painting is a revolutionary
and disruptive innovation in the aerosol paint industry.
At the same time, the Group is currently building a spray-painting
service online platform which matches users with providers of
at-your-doorstep spray-painting services. The wide range of colors,
textures and special effects (mirror, crystal, metallic, luminous
and many more) of SAMUARI 2K paints, the easy-to-use 2-head resin
plus hardener, together with Tintatek and matching of users with
providers brings DIY spray painting to a new level and a new era.
More and more of those who need to spray paint their possessions
will now be attracted to DIY spray-painting, bypassing the need to
go to a workshop with all its attendant costs and convenience.
Together with SAMURAI 2K's multi-media websites, which include
education and demonstrations of spray painting designs and
techniques, this is expected to exponentially increase the size of
the market for the Group's products.
4-Year Financial Performance Track Record
Many companies have bold visions to transform themselves. But
whether they can achieve it also depends on the strength of their
financials. For that , we need to look at a Company's long-term
track record. The Group's 4-year financial performance track record
is encouraging and gives confidence that it will be able to realize
its transformation for the Future. The financials portray a
future-ready but financially prudent company always ensuring that
it will be able to ride out any short-term turbulence in the
economy.
Table 1 below measures several aspects of Samurai 2K's financials
through four years including the period of Covid-19 impact on the
regional economies. It is rather rare for a company to exhibit
positive numbers on all aspects of its financials.
GROWTH: Revenue
PROFITABILITY: Net Profit, Gross Profit Margin, Net Profit
Margin
INVESTMENT MERIT: Return on Equity
LEVERAGE: Net Debt/Equity, Interest Coverage
LIQUIDITY: Current Ratio
Table 1: Stability and Financial Strength. (Samurai 2K FY is 31
March)
https://www.acnnewswire.com/docs/Multimedia/SAMURAI_2K_Aerosol.jpg
Table 1 shows a company that is financially strong, with consistent
performance. Gross and Net Profit margins are above average for a
consumer product. Debt/Equity has always been Net Cash, Current
Ratio has always been above 2, and judging from the Interest
Coverage, in the case of Samurai 2K, investors need not worry about
the current high interest rate environment.
Conclusion
Samurai 2K's vision is a bold one but its financial performance
track record and tangible progress in pursuing its vision are
encouraging signs that its transformation for the Future is
achievable.
This article is reproduced for international public consumption by
Waterbrooks Consultants the investor relations consultant for
Samurai 2K Aerosol Limited.
For more information, please visit www.waterbrooks.com.sg
Original article link:
https://www.investor-one.com/editorial/22275-SAMURAI-2K-AEROSOL-ACHIEVING-ITS-DIGITAL-TRANSFORMATION-VISION
SAMURAI 2K Aerosol Ltd [SGX: SAMR] [BBG: SAMUR] [RIC: Y8E.SI]
http://samurai2kaerosol.com/
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