CAROTECH set up in 1992 by MD - DAVID HO to develop phyto-pharmaceutical and nutraceutical products. The Company was listed on the MESDAQ on Apr 15, 2005.


HO's research on palm oil-based phytonutrients, began in 1992, resulted in a commercially viable extracting process that CAROTECHproceeded to patent. The firm's first plant, said to be the first and biggest globally, was then set up to produce the products in 1995.

CORE BIZ
CAROTECH's core business essentially involves the manufacture of phytonutrients from palm oil, utilising specialised high vacuum-low temperature distillation technology.

Europe is the Company's largest market, contributing more than 70% of sales, with the rest of its business coming from primary markets including the U.S., Japan and Australia. While recent record crude palm oil prices have dampened sentiment on the stock, which was once favoured by analysts and due to the robust demand for biodiesel globally, the fundamentals of the Company remains relatively unchanged.

CAROTECH has technology that is not easily replicated by its rivals due to high level of research and development. It also enjoys its "early bird" status in the industry as barriers to entry to the phytonutrients and biodiesel industries are relatively high.


CAROTECH's outlook is backed by the European Union's ambitious target of 2%, 5.75% and 20% for biodiesel conversion for transport purposes (on energy content basis) by 2005, 2010 and 2020 respectively.

PALM BIO-DIESEL - A BY PRODUCT
The Company's edge over other biofuel producers is the extraction of vitamin products from crude palm oil, which contributed 25% to 30% of sales in 2007. The sale of vitamins is an important margin of safety for the Company should crude oil prices continue to fall.

COMPANY RISK
The risks for CAROTECH include an uptrend in CPO prices and a sharp fall in crude oil price, which would make the production of biodiesel less viable.


CAROTECH is a listed subsidiary of HOVID - a pharmaceutical company also controlled by HO.(By KLSETRACKER.com)