May 26, 2005 15:41 PM

D&O Forecasts Better Profit In 2005

KUALA LUMPUR, May 26 (Bernama) -- D & O Ventures Bhd (D&O) which saw its light emitting diode (LED) business contributing to the bulk of its revenue, has forecast an after-tax profit of RM23 million for its current financial year.

"We achieved our target in 2004 with an after-tax profit of RM15.688 million," D&O group managing director Tay Kheng Chiong told Bernama recently.

D & O Ventures is an investment holding company and provider of management services whose subsidiary Omega Semiconductor Sdn Bhd provides "full turnkey" contract manufacturing of semiconductor components.

Tay said the LED business contributed 70 percent to the company's revenue and expected the contribution to be higher this year.

He said the LED business had strong potential and it was used in segments such as in automotive, T.V lighting and mobile phone.

In 2002, the worldwide market for LED was worth US$1.8 billion before increasing to US$4.74 billion in 2004. In 2008, the market value has been projected to reach US$6.92 billion, Tay said.

"Our LED output hit a record 83 million pieces in April 2005, and for this month we target to achieve 90 million pieces," he told reporters after the company's annual general meeting Wednesday.

Established in 1993, Omega Semiconductor started on a modest scale but was powered by an ambitious vision to be the subcontractor of choice in semiconductor manufacturing.

Omega has steadily grown to be one of the leading Metal-Can and Molded Discrete assembly and test facility in Malacca, serving worldwide multinational clients.

It now has two manufacturing plants with a total of 170,000 square feet built up area.

-- BERNAMA