Growth of the Company
Hup Soon Mechanical Works Sdn Bhd has been expanding since its establishment in 1969. The rapid growth of the company in the recent years is attributed to the range, quality and speed of services that it can provide. We will classify the growth into three phases:
Last 10 years:
For the last 10 years, our company has been progressing very steadily. Because of our reliability and our strong brand name in the market, we are able to secure many large-scale projects and jobs for the company. Our major projects include earthwork and overburden removal contract for Rahman Hydraulic Tin Sdn Bhd, maintenance of plant for Mamut Copper Mining Sdn Bhd and Tenaga National Berhad, and quarry projects for Pulau Salak Quarry Sdn Bhd and Kuad Sdn Bhd. On the automative and mechanical engineering side, our prominent clientele includes Ann Joo Steel Berhad, Southern Steel Berhad, Muda Paper Mills Sdn Bhd, Dragon Frontier Sdn Bhd (A Wholly Owned Subsidiary of Oriental Holdings Berhad), Prifaria Sdn Bhd etc.
In the recent years, we are still keeping up with our existing projects as they are continuous. However, we are now more project conscious, partly due to the current economic condition within Malaysia, and more notably the COVID-19 pandemic that had just hit upon us 2 years ago. Due to that, we are more selective in our projects and customers for the jobs that we are specialized in, to ensure the assurance of quality and competitiveness. However, our group is still committed to expand, explore and diversify into different areas of the market.
Next 10 years:
For the coming years, our group is committed to expand further by:
- Engaging in more high technology machineries to further improve our efficiencies, and quality of service in the automotive production line and manufacturing environment.
- Increasing sales and profit substantially by being more aggressive and targeting to more companies for jobs in our fields of specialization.
- Exploring the feasibilities of venturing into foreign market and fabrication of other new products.
- To have more joint-venture projects whether it is in Mechanical or Civil Engineering.
- Venturing into Property Development to ride onto the potential uptake in the sector.
- While we are looking at achieving for the above-mentioned, we will also look into acquiring more and setting up Aggregate and Tin Mining quarries of our own respectively since we have all the expertise and the machineries necessary for a successful operation.
- Finally, when the time is right, we will go into listing as a group in the KL Stock Exchange.
Percentage of Market Share
Currently, we are able to capture 55 % of the market to engage in our services, be it automotive, fabrication, repair or civil engineering works. Our group has been able to acquire an aggregate quarry of our own in CMAPX Aggregates Sdn Bhd (formerly Cemex Aggregates (Penang) Sdn Bhd, which has been operating in Malaysia since 2003 under the RMC/CEMEX group of companies. This acquisition has assisted the group in acquiring a bigger share of the market, further boosting our sales and profit margin as a group.
Our automotive engineering and mechanical fabrication and repair sales on average are at RM7,000,000 for now. We hope to increase to RM10,000,000 next year, RM15,000,000 the following year and RM20,000,000 the year after, at an average increasing rate of minimum 30 % to 50% yearly. We are convinced that with our continuous efforts of upgrading both our existing machineries and workforce, we are going to be at a level-playing field with the bigger players in the market, yielding an overall sale for all the sectors at an average of at least RM 20,000,000 yearly at an increasing rate of minimum 30% yearly.
Competitors and Customers
We have competitors from various small and medium industries in the market. However, as we have a strong brand name in the market, coupled with our product and service differentiation, these issues are considered as minors. We seek to continuously improve ourselves and our product/ service offering to better create a niche for us in the market.
Mechanical Engineering Sector:
- Automotive Engineering Concurrently, we have control of 45% of the market due to the very limited competitors we had in the market. Hup Soon’s long existing brand name, together with our team of experienced professionals have allowed us to have an added advantage that has given us an edge in the market.
- Repair and Manufacturing
Hup Soon Mechanical Works has been in the servicing industries for more than 40 years and through these years, we have acquired and upgraded numerous heavy machineries to perform different tasks that are suited to the different job requirements. From our years of experience, reliability and efficiency, we have also earned our trust and reputation from our valued customers. Because of that, our company has the competitive advantage over those smaller players in the industry. Therefore, we are able to capture at least 55% of the market share. In the future, our company is committed to continuously upgrade our fleet of heavy machineries in order to better serve the ever-changing market environment with the latest technologies. We also strive to provide more cohesive training programs for our team members to better equip them with the latest industrial knowledge in order for us to better serve our customers.
Civil Engineering Sectors:
This area requires a lot of high technology machineries and experience and most importantly, trust from our customers. We are able to secure a few turnkey projects from our previous customers and usually, we have no difficulty in securing more projects as we are able to maintain a good reputation among our customers with the quality of work we produce and the service we offer.
We hope to expand our business and growth along with the economy and with the ultimate aim of getting the company to be listed. Our present and future plans are detailed as follows:
Our main priority now is to restructure our workforce and the management of the company. Next, we need to acquire more advanced machineries to boost our manufacturing abilities. In the process of improvement, we will upgrade the working premises to ensure that our workers are comfortable with the working environment.
In line with our continued effort to expand the company, we hope to achieve the following:
- To acquire more licensed quarries of our own
- To have a tin mine of our own
- To acquire a licensed sand mining pit of our own
- To engage in full manufacturing and production line operations
- To provide consultant services on quarry for the productions and the equipment areas, and on automotive and mechanical servicing areas.
- To explore the feasibilities of franchising our products
- To form a new team to undertake more contracts from PBA, PDC, TNB, Penang Port and Building contracts
- To set up the vendor system to help the small and medium scale industries and it would help to boost our company image.
- To venture into Property Development
We have also outlined some staff programs and community programs to upgrade our staff. They are as follows: -
Proposed Staff Education Program: We will propose a few different programs for different staff as it depends on the individual abilities as well as their interest.
The basic program that we would implement is on the job training. Next is to send our staff to any institution to further their studies so that they could upgrade their individual skill. In doing so, they will be better exposed and hence a change in attitude to perform better in their work. Then we would send those staff that have a keen interest in Information Technology for training so that they could upgrade and fully computerize our company system.
Finally, we would create job promotion opportunities among our staff so that each and everyone would have the chance for an internal promotion. By doing this, all staff would then realize the importance of the job training and self-enhancement.
We would organize weekly or monthly social gathering for all the company personnel so that they can get to know each other and hence foster a better working relationship.
Also, we would encourage individual department to organize their own program for their own employees and if possible fit in other department as well.
All the expenses would be paid by the company as an encouragement. By supporting all the above-mentioned activities, we are allowing all employees to get to know each other better and to reduce if not completely eliminate any conflicts that might arise during work.
We would provide extra health care for our employees besides the government SOSCO. We would also consider purchasing additional health insurance for them as staying healthy is the key to an effective and efficient workforce.
With all the above mentioned plans, we have to start to plan out how we could achieve the ultimate goal in the shortest time possible.
After due consideration, our board have come to a conclusion of “NO PAIN NO GAIN” decision.
That is, we are willing to forgo the conventional way of doing business and adapt to the Modern business tactics as well as to heed our government advice - “MERGER”.
Our Proposed Options are as follows: -
- To sell all of our businesses
- To sell up to 60% of our business
- To merge with any genuine business company/investor
- To sell our business individually, i.e: Mechanical Engineering sector or Civil Engineering Sector.
In conclusion, we hope we could find a business partner or investor that will be able to accept any one of our proposals as mentioned for a reasonable premium as the bottom line for us is not to make a fast money.
Our ultimate goal and aspiration are to get Hup Soon Mechanical Works Sdn. Bhd. to be one of the major vendor providers in the Northern Region and finally to be able to list in the Kuala Lumpur Stock Exchange as Hup Soon Group with all of its subsidiaries in it.
Finally, once our company has achieved the ultimate goal, we will then expand on our staff and community service /program as mentioned earlier so as to help them to be a responsible citizen.