Scanwolf expects to sustain double-digit revenue growth on pent-up demand for furniture

KUALA LUMPUR, July 21 -- Scanwolf Corporation Bhd (Scanwolf) expects to sustain its double-digit revenue growth in its financial year 2022 (FY2022) on pent-up demand for furniture as the global vaccine rollout helps economies recover.

Executive director Ng Chee Wai said a strong economic recovery would drive demand for its furniture plastic-edging business.

“Our clients' feedback and the research conducted by our marketing team have shown that orders for furniture in the near future will continue to gain momentum,” he said in a statement today.

The company is expected to complete its rights issue of irredeemable convertible unsecured loan stocks (ICULS) with warrants by early August in a bid to raise funds for the expansion of its production lines.

The corporate exercise, which will raise up to RM10.5 million, is set to increase the maximum capacity of its production line by 45 per cent a month.

“Another catalyst that will drive demand for furniture is the shift towards remote working, which will drive consumer demand for furniture that will help optimise the work-from-home (WFH) environment.

“Apart from that, a diversification of orders from China to Malaysia by US importers amidst the prolonged US-China trade war will also benefit furniture players in Malaysia,” Ng said.

-- BERNAMA