[%vpfb%] 
Research by PIB 
Underperform – TP of MYR 1.16

“Flattish Orders Ahead” 

Poh Huat’s 2QFY24 headline net profit increased by 70% YoY to RM7.2m, mainly attributed to the uptick in orders from US customers for office segment products as US workers are progressively returning to office from working remotely. After stripping off non-operating items, Poh Huat’s 2QFY24 core net profit stood at RM5.1m in 2QFY24, up from RM1.8m in 2QFY23. The results were within our expectations at 46% but below market expectations at 39%. We continue to take a cautious stance as exports orders slowed down QoQ typically on non-festival season, leading to a sequential decline in utilisation rate. We maintain our FY24F-26F earnings forecasts and our Underperform rating with a higher TP of RM1.16 as we roll over our valuation base year to CY25F based on 8x PER (5-year mean). On a side note, Poh Huat declared a second interim dividend of 2.0 sen per share (bringing the total DPS to 4.0sen for FY24).

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

$KLSE-POHUAT 
Research by PIB 
Underperform – TP of MYR 1.16

“Flattish Orders Ahead” 

Poh Huat’s 2QFY24 headline net profit increased by 70% YoY to RM7.2m, mainly attributed to the uptick in orders from US customers for office segment products as US workers are progressively returning to office from working remotely. After stripping off non-operating items, Poh Huat’s 2QFY24 core net profit stood at RM5.1m in 2QFY24, up from RM1.8m in 2QFY23. The results were within our expectations at 46% but below market expectations at 39%. We continue to take a cautious stance as exports orders slowed down QoQ typically on non-festival season, leading to a sequential decline in utilisation rate. We maintain our FY24F-26F earnings forecasts and our Underperform rating with a higher TP of RM1.16 as we roll over our valuation base year to CY25F based on 8x PER (5-year mean). On a side note, Poh Huat declared a second interim dividend of 2.0 sen per share (bringing the total DPS to 4.0sen for FY24).

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

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)