NWP eyes 15% to 20% rise in turnover this year

Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: Timber-based NWP Holdings Bhd is eyeing an increase of between 15% and 20% in turnover this year, driven by the continuous demand for timber and timber-based products especially from China.

Last year, turnover stood at RM13mil, said executive director Wong See Ming.

“The outlook for this segment is good and we hope to achieve the target as 80% of our exports are to China,” he told reporters after the company’s AGM in Kuala Lumpur on Monday.

The remaining 20% of exports go to the United States and Europe.

For the financial year ended Aug 31, 2016 (FY16), the company recorded a pre-tax loss of RM2.99mil while revenue stood at RM12.68mil.

“With the new ventures into the construction and aviation segments last year, we hope to see a better performance or turnaround for this coming FY17 compared to FY16.

“For the construction segment, we forecast between 15% and 20% margin contribution from the RM22mil condominium turnkey project in Malacca to the FY17 results,” he said, adding the project was expected for completion in two years.

The project involved a nine-storey tower block comprising 160 units of serviced suites in Pekan Klebang, Malacca.

Meanwhile, for the aviation segment, Wong said NWP had recently acquired a 30% equity interest in Aviation A.I. Inc (AAI) for US$1.5mil.

“With the acquisition of AAI which owns a Gulfstream G-1159A aircraft, we believe it can contribute positively to our company’s future earnings as the charge for the aircraft is US$7,500 per hour,” he added.

On the contribution from each segment to the group, Wong said: “It is too early to mention, but we hope the new segments can improve our revenue going forward.” - Bernama