[%yeqf%]
Research by PB
Underperform – TP of MYR1.05

“Remain Cautious” 

Poh Huat’s 1QFY24 headline net profit increased by 50.9% YoY to RM10.3m, mainly attributed to the uptick in orders from US customers, driven by inventory replenishment efforts. After stripping off non-operating items, Poh Huat’s 1QFY24 core net profit dropped 27.9% YoY to RM10.6m. The results were within market expectations at 26.5% but above our expectations at 31.2%. The discrepancy in our forecasts were mainly due to higher-than-expected orders from US customers. Though recent quarter has shown improvement in sales volume from US customers, we take a cautious stance as we believe demand for furniture would take a longer time to recover in this prolonged high interest rate environment. All told, we reiterate our Underperform call on Poh Huat, and remain our FY24-26F earnings forecast, with unchanged TP of RM1.05 based on 8x CY24 EPS.

Analyst(s):
Thye May Ting 
[%VRdS%]

$KLSE-POHUAT
Research by PB
Underperform – TP of MYR1.05

“Remain Cautious” 

Poh Huat’s 1QFY24 headline net profit increased by 50.9% YoY to RM10.3m, mainly attributed to the uptick in orders from US customers, driven by inventory replenishment efforts. After stripping off non-operating items, Poh Huat’s 1QFY24 core net profit dropped 27.9% YoY to RM10.6m. The results were within market expectations at 26.5% but above our expectations at 31.2%. The discrepancy in our forecasts were mainly due to higher-than-expected orders from US customers. Though recent quarter has shown improvement in sales volume from US customers, we take a cautious stance as we believe demand for furniture would take a longer time to recover in this prolonged high interest rate environment. All told, we reiterate our Underperform call on Poh Huat, and remain our FY24-26F earnings forecast, with unchanged TP of RM1.05 based on 8x CY24 EPS.

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

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)