$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research by Public
Underperform – TP RM1.16

"Below Expectations”

Poh Huat’s 3QFY24 headline net profit decreased by 38.6% YoY to RM3.0m, primarily due to a loss of RM0.1m in other income compared to RM2.8m in 3QFY23, largely due to a foreign exchange loss of RM3.8m. Excluding the non-operating items, Poh Huat’s 3QFY24 core net profit stood at RM6.6m in 3QFY24, up 52% YoY from RM4.3m in 3QFY23. The results were below both our and consensus estimates at 66% and 59% of full-year forecasts respectively. The discrepancy in our forecast was mainly due to a lower-than-expected sales orders. We continue to take a cautious stance as exports orders slowed down QoQ, but we expect a sequential uptick in 4QFY24 on year-end festival season. Hence, we maintain our FY24-26F earnings forecasts and our Underperform rating with an unchanged TP of RM1.16 based on 8x 5-year mean PER on CY25F EPS. On a side note, Poh Huat declared a third interim dividend of 2.0 sen per share (bringing the total DPS to 6.0sen for FY24).

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