We are pleased to announce our most recent acquisition. Here are some of the facts of the company:
It is the mother of industry.
It has long term track record, founded in 1975, listed on HK stock exchange in 1993. It is also listed in Singapore.
It is run by two brothers who founded this company in their 20’s.
They began as a scrap metal trader, since then they have evolved many times leveraging on the beauty of expansion in tough times. They are doing this right now with the new plant soon to be established in Hangzhou.
They have a wide array of customers – automobiles, gadgets, appliances, toys, telecommunications, and more – hence the mother of all industries.
Competition is fierce, together with rising costs, these are hurting their profit margins a lot. Rising labour costs is not as much of a problem for them because most of their operations are automated. They don’t have a lot of employees, compared to lower skilled industries.
Not sure what are their succession plans since most of the board is getting old.
I am not sure the recent China-Japan spat has any detrimental effect on the company’s short or long term prospects.
This company is Lung Kee, 255.HK, also known as LKM.