HOME-GROWN manufacturer and distributor of electrical home appliances Pensonic Holdings Bhd has is optimistic about its future growth prospects, fuelled by its strategic initiatives and favourable market conditions.
The group is confident that its expansion into e-commerce, enhancement of manufacturing capabilities, and focus on developing energy-efficient products will support substantial growth both locally and internationally.
“We have made significant strides in managing stock levels, reducing loan ratios and optimising cash flow,” commented Pensonic’s group CEO Datuk Dixon Chew Chuon Jin. “These efforts have already yielded positive results whereby we’re confident that our sales will continue to grow as we strengthen our market position.”
Pensonic further attributed its return to profitability in its 1Q FY5/2025 ended Aug 31, 2024 (with a net profit of RM42,000) to its strategic focus on growth areas such as e-commerce and digital marketing.
With a re-energised marketing approach leveraging billboards, social media and other branding channels, Pensonic believed that it has successfully increased brand visibility and consumer engagement, hence setting a strong foundation for continued growth.
“Our manufacturing operations have seen substantial growth, particularly in response to the ongoing China-US trade war,” enthused Chew.
“This has opened new opportunities for us in export markets. Our energy-efficient refrigerators and fans have been very well-received with Pensonic’s manufacturing sales having surged to RM34 mil in our FY5/2024 from RM7.8 mil in FY5/2023, marking an impressive growth of 333%.”
Innovation drive paying dividends
Elsewhere, Pensonic has also focused on improving key financial ratios, notably by trimming its total borrowings by 25%, from RM83.2 mil to RM62.3 mil while its inventory management has also improved significantly with inventory levels edging down from RM79.6 mil to RM58.8 mil through strategic inventory adjustments.
Looking ahead, the group is optimistic about the broader economic environment in Malaysia, particularly with expected private consumption growth of 5.9% in 2025, driven by rising incomes, minimum wage increases and targeted government assistance programmes like the Sumbangan Tunai Rahmah (STR).
Additionally, the recent minimum wage hike from RM1,500 to RM1,700 is projected to further enhance disposable income for a significant portion of the population by prompting demand for mid-to-high-end product lines.
“With these favourable economic conditions and the group’s strategic focus on product innovation, manufacturing excellence and digital expansion, Pensonic is well-positioned for continued growth,” projected Chew.
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Recently, the group was honoured with the Sustainability in Electronics Excellence Award at the McMillan Woods Global Awards 2024 for its eco-friendly initiatives and development of energy-efficient products like refrigerators and fans.
Additionally, Pensonic’s founder Datuk Seri Chew Weng Khak received the Brand Legend 60 Years Award from the Branding Association of Malaysia as he celebrated six decades of contributions to the industry.
The group was also awarded the SOBA Gold Award in the Best Brand category and the Silver Award at the Putra Brand Awards 2024 in the Top Brands category for Personal, Household & Outdoor Appliances which further affirm Pensonic’s position as a leading consumer electronics brand.
At 4.18pm, Pensonic was unchanged at 49.5 sen with no trade done and a market capitalisation of RM78 mil. – Nov 1, 2024
