[%WRGw%] 
Research by Public Investment
Neutral – Target Price RM1.16

“Below Expectations”

Poh Huat’s 3QFY23 headline net profit fell by 78% YoY to RM4.8m, due to a decline in customer orders from North America and lower furniture spending. After stripping out non-core items, Poh Huat’s 3QFY23 core net profit came in at RM4.3m, bringing its cumulative 9MFY23 core net profit to RM20.8m. Results were below both our and consensus estimates at 64% and 59% of full year forecasts respectively. The discrepancy in our forecast was mainly due to the weaker-than-expected furniture sales. We maintain our FY23F-25F earnings forecast as we expect 4QFY23 sales to improve due to seasonality factors. Note that 4Q usually accounts for c.30% of Poh Huat’s full-year sales. As such, we retain our Neutral call on Poh Huat with unchanged TP at RM1.16 based on 7x CY24 EPS. On a side note, Poh Huat declared a second interim dividend of 2 sen.

Analyst:
Thye May Ting 
[%mvHa%]

$KLSE-POHUAT 
Research by Public Investment
Neutral – Target Price RM1.16

“Below Expectations”

Poh Huat’s 3QFY23 headline net profit fell by 78% YoY to RM4.8m, due to a decline in customer orders from North America and lower furniture spending. After stripping out non-core items, Poh Huat’s 3QFY23 core net profit came in at RM4.3m, bringing its cumulative 9MFY23 core net profit to RM20.8m. Results were below both our and consensus estimates at 64% and 59% of full year forecasts respectively. The discrepancy in our forecast was mainly due to the weaker-than-expected furniture sales. We maintain our FY23F-25F earnings forecast as we expect 4QFY23 sales to improve due to seasonality factors. Note that 4Q usually accounts for c.30% of Poh Huat’s full-year sales. As such, we retain our Neutral call on Poh Huat with unchanged TP at RM1.16 based on 7x CY24 EPS. On a side note, Poh Huat declared a second interim dividend of 2 sen.

Analyst:
Thye May Ting 
thye.mayting@publicinvestbank.com.my

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)