Mike Zabran: Got it. Thanks, Selwyn. That’s all from me guys.
Selwyn Joffe: Thank you very much.
David Lee: Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Matt Dane from Titan Capital Management. Your line is open.
Matt Dane: Great. thank you. I wanted to ask about the new Malaysian facility that you referenced in the call. I was hoping you could walk through some of the benefits that you expect from that. I just wasn’t certain if you were just expanding capacity or if there’s other benefits or just help me understand that if you could.
Selwyn Joffe: Yes. So, that’s a great question, Matt. That’s — it’s very exciting for us. What we did there is we opened — we’ve been in Malaysia, I wish I knew the exact number of years, I mean probably over three decades. And we’ve been able to continue to grow the old facility. What we’ve done is we’ve created a brand-new state-of-the-art facility, which allows us now to meet all the tests to ship our customers direct from Malaysia to our customers. So, it’ll never be touched here. So, wheel hubs, the new wheel hub program, which we — which is in line with what we’ve been doing, same thing now, has more capacity to go direct with storage for that inventory staging areas for that inventory to be shipped directly to our customers around the world, but in particular, in the United States.
And that’s a big deal, because our competitors are Chinese based and they have subject to tariffs, and our customers buy large orders of this and so want to take ship direct programs and we think that’s going to open up some big opportunities going forward. I think short term you’ll see a little bit of a dip in that product line and then in the next six months we should see some extreme — I think we’ll see some extreme gains in that product line. So, very exciting and it’s a fabulous plant already had a major customer visit and he was extremely impressed with it. I mean and that’s all in the CapEx. It’s all paid for and done.
Matt Dane: Okay. So, you expect this plant and the cost efficiency of shipping directly to the customer, it’s basically to lead to some substantial revenue gains as you gained share from your Chinese competitors. Is that what I heard you say more or less?
Selwyn Joffe: Yes. Yes, I think we’ll see margin gain and share gain in time.
Matt Dane: Great, great. Glad to hear. I also did want to ask about the quality bill product line and reference that very briefly in the call as well. Just was curious, the traction that you are seeing with that product line, how is that relative to your expectations?
Selwyn Joffe: It’s — well, we have high expectations, I’ll start there. So, although answering relative, every time I get results of how we’re doing, my expectations grow. but I mean, we’ve growing that, we’ve had over 40% growth rates in that product line and that product branding name, and it’s becoming a nationally recognized brand. and I’m extremely excited about how that’s unfolding. We’re adding many new customers to the brake line under our quality-built name, and we are just getting more and more demand for quality-built. And so that brand value and that brand equity, we are excited about that. The other side of that is there’s no factoring cost, there’s no supply chain cost on launching and growing that business. So that’s also encouraging to us.
Matt Dane: Okay, good to know. I appreciate it.
Selwyn Joffe: Thank you.
David Lee: Thank you.
Operator: And there are no further questions at this time. I will now turn the call back over to Selwyn Joffe for some final closing remarks.
Selwyn Joffe: Okay, thank you. So, just in summary, we’re excited about year-to-date accomplishments and our outlook; in particular, our strong cash flow, our pay down of debt. We expect the further benefit of additional price increases and the opportunities to further enhance shareholder value. We are encouraged by our leadership position in the industry and our solid customer partnerships. We built the platform for growth that is not easily duplicated and we expect this growth to continue on in the future, especially as the demand for our non-discretionary aftermarket products. So, the critical need for our consumers, the cars are on the road that the car population continues to grow and non-discussion parts will be there.
