Komarkcorp aims to derive 50% of revenue from face mask division

PETALING JAYA: Komarkcorp Bhd aims to generate 50% of revenue from its new face mask division, Komark Mask (M) Sdn Bhd, said executive director Roy Ho Yew Kee.

He said the company has been working on increasing the face mask division’s contribution to the company’s revenue to 50%, with the other 50% coming from label and printing services.

“Currently, 70% of the company’s revenue comes from the label and packaging division while 30% comes from the mask division,“ he told reporters after a guided tour of its factory in Balakong, Selangor, today.

The company is expanding its factory Balakong to 100 production lines by the end of 2022, from 30 production lines currently. The expansion will enlarge its capacity to fit up to 40 mask-forming machines with the potential to produce 40 million disposable face masks monthly.

Ho said its new factory measuring 60,000 sq ft, which is nearing completion, at Meru, Klang, will be used solely to produce face masks with its own brand called Komark Mask.

“The factory in Meru will cater to another 70 production lines, in which 20 production lines will be fully operational by January 2022.

“We plan to export medical-grade masks to Indonesia, Brunei, Vietnam and Thailand. The Meru factory is for the ease of transporting masks to Port Klang for export while Balakong’s factory will focus on production for the local market.

“The packaging and printing services (segment) depend on the economy. We have yearly contracts with large corporations but we are unsure if those contracts will be extended because many multinational companies (MNC) that use local printing services left Malaysia for other countries with lower operational costs,“ he added.

Komarkcorp assistant general manager Brandon Cheong said the Balakong factory produces 150 cartons of three-ply and four-ply masks daily.

On exports, he said the company is in the process of choosing the right business partners.

The company’s net profit totalling RM107,000 in its second quarter ended Oct 31, 2021 is a reversal from a net loss of RM960,000 in the corresponding quarter in the previous year, contributed by higher revenue generated from the label and packaging division as well as the new mask division.

Its revenue for the quarter more than doubled to RM18.16 million from RM8.26 million previously.