PENANG, MALAYSIA – In a move to broaden its revenue base, PCB maker Guh Holdings is expanding into the electric vehicle business with the recent acquisition of a 70% stake in Star Wheels Electronics, a company involved in the sales, distribution, manufacturing, assembly and repair of electric scooters, hoverboards and spare parts.

"Star Wheels generates RM2 million ($459,000) to RM3 million ($689,000) sales per annum. The company has nine sales outlets in the country and distributors in the Philippines and Australia,” Guh managing director Datuk Seri Kenneth H’ng told StarBiz about the RM2.1 million ($483,000) transaction.

“For example, the e-scooter-sharing business in Malaysia is expected to hit RM29 million ($6.7 million) in 2023 and is projected to grow at an 18.9% compounded annual growth rate (CAGR) over the 2023-2027 period to reach RM58 million ($13.5 million) by 2027," he said. "In the e-scooter-sharing segment, the number of users is expected to amount to 1.1 million by 2027. User penetration is 1.9% in 2023 and is expected to hit 3.2% by 2027."

H’ng told StarBiz the group’s PCB business, its core activity, is still stable despite the inflation and higher interest rates.

"Our PCBs are manufactured by international brand names and used in electrical and electronic household appliances, automobiles and medical fields. The forecast for our PCBs is still stable," he said.

According to The Business Research Company, the global household appliances market is expected to grow from RM2.39 trillion ($551.29 billion) in 2022 to RM2.63 trillion ($606.58 billion) in 2023 at a CAGR of 10%.

"The household appliances market is expected to grow to RM3.72 trillion ($859.71 billion) in 2027 at a CAGR of 9.1%," H’ng said. "However, the group still needs to reduce its dependence on its PCB business."

Guh Holdings recently entered into a memorandum of understanding with Jiangsu Xinri International Trading Company that will see Guh eVehicle being appointed as the exclusive distributor and representative to market, promote, distribute, assemble, manufacture and sell electric motorbikes supplied by Xinri in Malaysia under the brand name Guh Sunra.

Guh eVehicle’s principal activities are research and development on lithium battery-powered vehicles, manufacture and assembly of EVs and all forms of E2, E3 and E4 wheelers, as well as sales and marketing and after-sales servicing of EVs and all-encompassing products.

Guh plans to invest RM10 million ($2.3 million) in EV and EV-related businesses, H’ng said.

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