RUBBERWOOD furniture maker Baswell Resources Bhd, which is en route to a listing on the KLSE second board, is confident of meeting its revenue target of RM64mil for its financial year ending Sept 30, 2003.
Its executive director and chief executive officer Khoo Yew Kheng said that having just completed its first fiscal quarter of the current year, the company was on track to meeting its financial targets.
We have also met our revenue target of RM55mil for the year ended Sept 30, 2002, and, barring any unforeseen circumstances, are confident of meeting the financial targets set in the prospectus, she told reporters after a tour of Baswell's furniture manufacturing facilities in Klang yesterday.
For its flotation, the company is making a public issue of 7.8 million RM1 shares at RM1.50 apiece. Of the total issue, 1.586 million new shares are for the public, two million for private placement, 2.4 million shares for Baswell's eligible employees, directors, suppliers and customers, and 1.814 million shares for bumiputra investors identified by the International Trade and Industry Ministry.
Some 72.9% of Baswells turnover comes from rubberwood furniture, 26.6% from corrugated paper boxes, and the balance 0.5% from the trading in treated rubberwood sawn-timber.
About 98% of the company's furniture, targeted at the high-end market, is exported to 28 countries, while all its corrugated paper boxes are sold to local furniture manufacturers that cater to the export market.
Baswell executive chairman and group managing director Dr Hans Oh Han Cheng said Malaysia's furniture industry should target the high-end market as it was unable to compete directly with countries that had lower labour cost such as Vietnam and China.
By using more efficient and higher technology-based production processes, we will be able to offset the lower labour cost advantages, he said.
Baswell is an investment holding company whose subsidiaries, Baswood Industries Sdn Bhd and Aimwood Furniture Industries Sdn Bhd, are involved in the manufacture and export of wooden furniture.
Another subsidiary, Deswell Packaging (M) Sdn Bhd, produces corrugated paper boxes.
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