EITA Resources Berhad's positioning within the industry supply and value chain for the elevator segment of the lifting and handling equipment industry (Figure 1) and busduct systems segment of the electrical distribution systems in buildings industry (Figure 2) are depicted below:
Figure 1: Industry Supply and Value Chain for Elevators
Figure 2: Industry Supply and Value Chain for Busduct Systems
- There are no practical substitutes for electrical and electronic components and equipment as a whole.
- Our society is currently heavily dependent on the use of electrical and electronic products, and as such, there is no practical substitute for electrical and electronic components and equipment.
- Apart from the use of stairs, ramps and ladders, there are currently no practical substitutes for the use of elevators in moving large numbers of people between floors of buildings, particularly in tall buildings such as condominiums and office towers.
- Cable wiring systems are substitutes for busduct systems.
Elevator Systems
- Demand for elevators is generally dependent on the performance of the construction industry, in particular the following types of property: residential property, shopping complexes, purpose-build office blocks and hotels.
- The number of residential property, shopping complexes, purpose-built office blocks, and hotel starts recorded in Malaysia between 2006 and 2010 are summarised in the table below:
| |
Residential
Property |
Shopping
Complexes |
Purpose Built
Offices |
Hotels |
| Number of Units |
Growth Rate (%) |
Space (m2) |
Growth Rate (%) |
Space (m2) |
Growth Rate (%) |
No. of Rooms |
Growth Rate (%) |
| 2006 |
144,268 |
|
346,284 |
|
167,836 |
|
910 |
|
| 2007 |
133,948 |
-7.2 |
302,566 |
-12.6 |
330,477 |
96.9 |
1,310 |
44.0 |
| 2008 |
298,135 |
122.6 |
453,456 |
49.9 |
222,436 |
-32.7 |
2,373 |
81.1 |
| 2009 |
86,743 |
-70.9 |
429,987 |
-5.2 |
142,992 |
-35.7 |
4,458 |
87.9 |
| 2010 |
84,210 |
-2.9 |
420,255 |
-2.3 |
603,366 |
322.0 |
1,868 |
-58.1 |
| AAGR (%) |
-12.6 |
5.0 |
37.7 |
19.7 |
Note: AAGR = Average Annual Growth Rate between 2006 and 2010.
(Source: Valuation and Property Services Department, Ministry of Finance)
Busduct Systems
- Like elevators, demand for busduct systems is generally dependent on the performance of the construction industry, in particular the following types of property: residential property, shopping complexes, purpose-build office blocks and hotels.
- The number of industrial property starts recorded in Malaysia between 2006 and 2010 is summarised in the table below:
| |
Industrial Property |
| Number of Units |
Growth Rate (%) |
| 2006 |
427 |
|
| 2007 |
655 |
53.4 |
| 2008 |
494 |
-24.6 |
| 2009 |
703 |
42.3 |
| 2010 |
638 |
-9.2 |
| AAGR (%) |
10.6 |
Note: AAGR = Average Annual Growth Rate between 2006 and 2010.
(Source: Valuation and Property Services Department, Ministry of Finance)
As with most free enterprise environment, the factors that are used to compete and to differentiate one operator from another include the following:
- Range of brands covered
- Elevator system safety
- Busduct system certification
- Quality of the products and services offered
- Ability to offer total customised solutions
- Track record
Competition intensity among operators in the lifting and handling equipment industry focusing on elevators and busduct systems is deemed moderate.
| MARKET SIZE, SHARE AND RANKING |
Elevator Systems
- In 2010, the market size for elevators and escalators in Malaysia based on the value of elevators purchased by the Construction Industry is estimated at RM470 million (Source: Vital Factor Consulting Sdn Bhd).
- In 2010, EITA Group's market share of elevators in Malaysia (based on revenue derived from sales of elevators in Malaysia for the financial year ended 31 December 2010) was estimated at 10% (Source: Vital Factor Consulting Sdn Bhd).
Busduct Systems
- In 2010, EITA Group ranked sixth (based on revenue) among companies involved in the manufacturing of busduct systems in Malaysia (Source: Vital Factor Consulting Sdn Bhd).
Please read this section in conjunction with EITA Resources Berhad’s Prospectus dated 26 March 2012.