NWP moves past legal issues and looks to the demand for its timber manufacturing business

NWP Holdings Bhd (KLSE: 5025) (“NWP” or “Group”) has moved past the legal tussles involving its Board of Directors as legal suits were dropped following the reshuffling of its boardroom members. 

NWP has appointed its largest shareholder, Dato’ Tan Lik Houe, as the Non-Independent and Non-Executive Director while his daughter, Tan Jyy Yeen, was made the Executive Director. Aside from that, Dato’ Yeo Chai Poh was also named as an Independent and Non-Executive Director. 

The Group’s newly appointed Non-Executive Director, Dato’ Tan Lik Houe, said: “We are looking ahead on measures to drive recovery for the Group following the legal issues within the Group. On 28th March 2022, on the advice of our legal team, Originating Summons No. WA-24NCC-55-01/2022 has been withdrawn. We are glad that we will turn over a new page. I wanted to take this opportunity to thank the former board of directors for the commitment they have given.”

With the uncertainties and infighting within the Group settled, NWP will tap into the surge in demand for its timber manufacturing business amidst the reopening of international borders and the economy. 

According to Dato’ Tan, the demand for furniture has surged over the last one year and an increase in timber prices will also benefit NWP, allowing the Group to record a turnaround for its upcoming financial year. 

“We remain very focused on our existing core business, which is the timber manufacturing business. Since the reopening of the economy, we have seen an increase in orders for our business, led by the surge in demand for furniture. This is partly due to the return to workplace as the economy reopens. The pricing of timber has also increase by 20% as compared to the average selling price in 2021. This would also benefits the Group, and we are optimistic that both the strong demand and pricing will drive the turnaround for NWP in the upcoming financial year.”

To be specific, Datuk Tan shared that orders from China are particularly strong and would provide the foundation for the Group to grow over the next three to five years as NWP’s expansion strategy takes off. 

During the pandemic and the Movement Control Order (MCO) that was imposed, it had a severe impact on the Group’s manufacturing capacity. This is partly affected by the supply chain disruption and logistic bottlenecks. However, with the reopening of the economy, NWP is looking to ramp up its manufacturing capacity from its current level of around 20% to 80% by the end of this year. 

“The focus on the timber manufacturing business will rejuvenate the Group and drive the turnaround of our financial performance in the upcoming financial year as we ramp up our manufacturing capacity to 80% from the current level of 20%,” Datuk Tan said. 

He also added that the Group is planning on its expansion strategy and is optimistic of a strong turnaround in the post-COVID world. 

“Over the last two years, the management has taken proactive measures to ensure a more agile team and improve our manufacturing efficiency to lay down the foundation for growth in the post-COVID world. With the resolution of the legal tussles, I’m confident that NWP will take on the next phase of growth,” he said. 

This content is provided by Aegis Communication Sdn Bhd.

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