Wegmans Holdings to benefit from exchange rate, US-China trade war

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KUALA LUMPUR (May 21): Home furniture manufacturer Wegmans Holdings Bhd is optimistic of its outlook prospects, underpinned by favourable foreign exchange movement and opportunities arising from the US-China trade tensions.

Managing director Keh Wee Kiet said over the long-term, the group is positive that its efforts in penetrating into new market segments will continue to bear fruit and reflect in its future financial performance.

"The export markets remain as the key growth driver for us, especially the US market where we received an influx of sales orders.

“The on-going US-China trade war has provided us a lot of business opportunities as we received higher enquiries and sales leads from American customers who are looking to shift their orders to Southeast Asia,” he said in a statement in conjunction with its second Annual General Meeting (AGM) here today.

Keh said revenue from the US market grew strongly in the financial year 2018, jumping 33 percent year-on-year from 21 percent a year ago, overtaking the Japanese market as its primary revenue contributor.

“We believe the favourable demand trend will prevail in 2019, as more buyers are switching their sourcing destination,” he said.

The ACE-listed company also ventured into the Original Brand Manufacturing business with new collections of home furniture products under its own Collino Designs brand.

Keh said the new business was part of its strategy to spur demand and further penetrate the furniture market in China.

The concept of Collino Designs differs from the Original Design Manufacturing as the former focuses on thematic approach instead of the mix-and-match approach.

He said the group is currently expanding its production facility in Muar, equipping it with new and upgraded machineries to cater to the growing demand.

At the AGM, the shareholders approved the final single-tier dividend of 0.5 sen per share, amounting to RM2.5 million, for the financial year ended Dec 31, 2018.