KUALA LUMPUR: Office furniture manufacturer, AHB Holdings Bhd aims to be the largest player in the local market within five years, said chief executive officer and managing director, Yong Yoke Keong.
He said the local office furniture industry was estimated to be about RM200 million per year.
Some of the company's local clients were Public Bank, Petronas, and BASF Malaysia, he added.
Currently, the group exports about 85 per cent of its products to 25 countries, including Germany, Africa and Australia.
"With strong corporate balance sheet with about RM5 million to RM10 million net cash, the management and the board of directors of AHB are very focused on the business going forward," he told a press conference here today.
He said the group was optimistic of strengthening its balance sheet once the company is profitable.
It was reported last month that AHB fell into the PN1 status when it defaulted on the repayments of bank borrowings amounting to RM4.8 million.
Yong said the group expected to exit the PN1 status by next month once the default payment of RM4.2 million is fully paid.
At present, AHB has seen much improvement in market demand for its Artwright branded products, known for their good design and quality.
Commenting on its expansion plan, Yong said AHB intended to build a manufacturing plant near Port Klang and set up new offices in India.
On growth strategy, he said the group was looking out for acquisitions thatwould bring high value for its shareholders.
"We are looking at active companies in the region. We see them in the market and were shorlisted in open tenders many times and are very well established,” said Yong when asked on the number of companies that were identified for acquisition.
However, he said this is still in the preliminary stages as it is too early to make statements at this time.
"These acquisitions must be synergetic and high profit generating.
It should also bring about even higher resilience within the group," said Yong.-- Bernama