Man Wah Holdings predict double-digit export growth

Furniture maker Man Wah Holdings is confident of double-digit growth in its exports to the United States and Europe, despite a weak American economy and the euro-zone debt crisis.

While rising costs are forcing many factories to leave the mainland, the Hong Kong-listed company plans to increase its mainland manufacturing workforce to support its booming exports.

This year, the company has far outperformed the Hang Seng Index, with its share price jumping from HK$2.68 on August 15 to HK$6.59 on December 27. The HSI, meantime, is up 22.4 per cent so far this year.

Man Wah's exports to Europe and the US have been growing at a more than 20 per cent annual clip, said Stephen Allen Barr, one of the company's executive directors.

For the six months ended September 30, Man Wah's exports to Europe rose 26 per cent, while sales in the US, the company's biggest market, grew 21 per cent, according to a report by securities house Sunwah Kingsway. During that period, Man Wah's revenue reached HK$2.4 billion, with 54.8 per cent from the US, 9.1 per cent from Europe, 24.9 per cent from the mainland and 1.7 per cent from Hong Kong.

"We did all our growth in the US in the last six years, when the US economy was much bleaker than today. We grew our sales during the financial meltdown and the US mortgage meltdown, despite renminbi appreciation," said Barr.