Etitech worth to buy????
From 52 weeks of high 2.61 to current price of 0.475.
High risk or what?????
Written by Regina William
Monday, 19 October 2009 11:55
GEORGE TOWN: ETI TECH CORPORATION BHD [], which recently teamed up with Nasdaq-listed US electric vehicle maker ZAP (Zero Air Pollution), is planning to expand its manufacturing facility at the Kulim Hi Tech Park next year.
Its founder and executive director Dennis Chuah said it was seeking a RM160 million loan from the Malaysian Industrial Development Authority (Mida) to build another facility on the 10-acre site, of which only 2.6 acres had been utilised.
ETI Tech, which prides itself as a green TECHNOLOGY [] company, signed a memorandum of understanding last August for the supply of ETI Tech batteries and battery management systems (BMS) for ZAP’s personal transportation electric vehicles.
ZAP is to provide its personal transportation vehicle line to ETI Tech in Malaysia for the integration of its battery and BMS technology.
ZAP has further agreed to appoint ETI Tech as the distributor of ZAP electric vehicles in Malaysia and other international markets to be determined by the two companies. ETI Tech retains the rights to assign another distributor on behalf of ZAP in Malaysia, but will remain the supplier to the venture.
Speaking to The Edge Financial Daily, Chuah said the proposed facility would enable the company to expand its production of lithium-ion polymer batteries for various mobile gadgets, green generator sets, green golf carts, universal portable packs and electric vehicles.
The battery technology developer recently also unveiled what it claims to be a revolutionary technology involving the replacement of lead acid battery with lithium-based battery for storage of renewable solar energy.
EXPANSION MODE... ETI Tech is gearing up for a rise in demand for green batteries and battery management systems following its tie-up with Nasdaq-listed electric vehicle maker ZAP, says Chuah.
With the distinction of being the world’s first, ETI Tech has said the battery system in its Solar Home only requires a full effective solar radiation in one day, versus three times longer in lead acid batteries, and can store the required daily capacity need of one family.
ETI Tech is targeting initiatives involving community-level electrification development to boost “green” rural electricity generation.
Its current facility has a built up area of 42,000 sq ft with 100 employees, 40% of them being engineers. Most of its mass production is outsourced.
“The new facility expansion will be carried out in two phases with the first phase involving an investment of RM40 million and the second phase another RM120 million.
“With the new facility, which we are hoping will be operational by 2010, we will be able to meet the demands following our tie-up with ZAP,” Chuah added.
ETI Tech also supplies its products to original design manufacturers.
Its production of polymer lithium-ion-based energy cells for golf carts is touted to be the first in the world, lasting three times longer than normal batteries.
ETI Tech already has orders to supply the batteries for golf carts for all 147 golf clubs in Malaysia and is in talks with parties in Thailand, US, India and Taiwan where trial runs are being carried out.
About 80% of its products are exported to Taiwan, Hong Kong, India and Australia.
“The tie-up is for us to use our products in ZAP’s electric vehicles and also to be our distributor in 73 countries, where ZAP already has sales distribution channels.
“The demand for our products here in Malaysia is saturated and hence this tie-up will enable us to expand further.
“We are looking at supplying our lithium-ion energy cells for electric bicycles which have already been tested early this year, while we are also working on testing our products for electric scooters,” Chuah said.
He said the company was also on the lookout in China for companies in the same business to buy up manufacturing and distribution rights.
“Though China is our main competitor due to the lower cost of its products, the quality of our products is different. We have taken great pains with our branding as we are in this business for the long term and our products go into the premium market. In 2008, ETI Tech garnered RM80 million in turnover with RM20 million in profit.
This article appeared in The Edge Financial Daily, October 19, 2009.
