Weaker baht to aid Nam Hing

Laminates-maker Nam Hing Holdings has seen its material costs fall significantly since the depreciation in the Thai baht, but is concerned about demand for laminates, managing director Patrick Lau Chung-yim says.

Prices of scrap copper, the core material of laminates, have fallen to US$1,800 a tonne from $2,400 at the start of the year, he said.

While prices looked set to stabilise in the next few months, he said, the regional financial crisis could affect the demand for laminates in the South China region.

'The company's orders on hand are growing slightly against the previous corresponding period, but the overall performance will depend on the peak season in the next few months, he said.

The company yesterday reported a 533 per cent surge in interim attributable profit to HK$15.25 million, which had yet to reflect the benefit of the currency.

'Our operating cost will be reduced significantly as the devaluing baht reduces expenses on labour, electricity and water in our Thailand factory,' Mr Lau said.