HANOI: MWE Holdings Bhd ( Financial Dashboard)’s wholly-owned subsidiary United Sweethearts Garment Sdn Bhd (USG) expects to contribute about US$40 million (RM166.4 million) to group revenue from the next financial year ending March 31, 2017 (FY17) upon the completion of its expansion plan in Vietnam.
The number of production lines will increase by an additional 42 from 26 currently in Dong Nai Province, southern Vietnam. USG managing director Tang Chong Chin said with more production lines, the subsidiary targets 60% revenue growth for FY17.
“With the increase in production lines in our Vietnam plant (United Sweethearts Garment (Vietnam) Co Ltd), our total lines will amount to 100, including 32 in Malaysia,” he told reporters after MWE Holdings’ annual general meeting yesterday.
“We will be able to cater to higher demand in the United States and European markets. We hope to increase our market share in Europe with the additional production lines,” he said, adding that its capital expenditure amounted to US$6 million.
Tang said the plant expansion of its Vietnam unit, established in 2002, would be completed in the middle of next year, hence the expectation of revenue contribution in FY17. He added that the garment manufacturing sector contributes about 70% of MWE Holdings’ revenue, while the rest is derived from its telecommunications segment.
For its first financial quarter ended June 30, 2015 (1QFY16), the group recorded a net profit of RM6.75 million on a revenue of RM84.8 million. MWE Holdings (fundamental: 0.65; valuation: 2) shares closed unchanged at RM1.20 yesterday, with a market capitalisation of RM276.3 million.
