Poh Huat Resources Holdings Berhad

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research Report by TA

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research Report by PBIV

$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

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research by TA
HOLD – TP RM1.40

" Dragged by the Sluggish US Demand”

 Excluding a foreign exchange loss of RM1.6mn, POHUAT’s 9MFY24 core profit of RM22.1mn came in below expectations, accounting for 54.6% and 59.1% of ours and consensus full-year estimates. The variance was mainly due to lower-than-expected sales from Vietnam's operations.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

KUALA LUMPUR: Poh Huat Resources Holdings Bhd's sales orders are expected to remain flat as the furniture industry will continue to be challenging due to a slowdown in the US market.

© New Straits Times Press (M) Bhd

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research by TA
Hold – TP of MYR 1.50

“2Q24 Dragged by Vietnam Operations ”

Excluding a foreign exchange gain of RM2.0mn, POHUAT’s 1HFY24 core profit of RM15.6mn came in below expectations, accounting for 34.0% and 38.9% of ours and consensus full-year estimates. The variance was mainly due to lower-than-expected profit contributions from Vietnam's operations.

Analyst(s):
Chan Mun Chun
mcchan@ta.com.my

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
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 - Notice of Book Closure

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)

Second Interim Dividend

General Meetings: Outcome of Meeting

PETALING JAYA: Poh Huat Resources Holdings Bhd is expected to receive more sales orders in the coming months with demand recovery for its furniture, says TA Research.

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
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

STATEMENT TO SHAREHOLDERS IN RELATION TO THE PROPOSED PURCHASE BY POH HUAT RESOURCES HOLDINGS BERHAD OF ITS OWN SHARES

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

POHUAT - Notice of Book Closure

Final Dividend

OTHERSPROPOSED PURCHASE BY POH HUAT RESOURCES HOLDINGS BERHAD OF ITS OWN SHARES

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD) - Cash cow in the furniture industry

Superb balance sheet position with RM300m net cash (vs M Cap of RM360m); FY23 performance deteriorated significantly but the business remains profitable and generate strong FCF.

Possible to see improvement to its topline this year? Cash cow with >5% dividend yield.

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research by TA Securities
Hold – Target Price RM1.40

“Expect a Stronger Year Ahead”

After rolling forward our valuation base year to CY25, we tweaked the target price higher from RM1.33 to RM1.40, based on 8xCY25 earnings. Maintain Hold call on POHUAT. We believe the solid balance sheet with a strong cash pile of RM308.6mn will help the group to sail through the near-term headwinds.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/10/2023

POHUAT - Notice of Book Closure

First Interim Dividend

Why no $POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)

Ringgit At 25-Year Low - Here's Why The Currency Could Plunge To RM5 To The U.S. Dollar https://cutt.ly/PwWTz5DI

UsdMYR @ 5

Who will benefit the most?

Not glove pls.. cos we know they’re at bad shape. tech also… furniture maybe? Any others?

$LIIHEN / 7089 (LII HEN INDUSTRIES BHD.) $POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD) $HOMERIZ / 5160 (HOMERITZ CORPORATION BERHAD)

From my analysis, I can found that $POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD) $WEGMANS / 0197 (WEGMANS HOLDINGS BERHAD) and $HOMERIZ / 5160 (HOMERITZ CORPORATION BERHAD) have the best long term performance.

However, $WEGMANS / 0197 (WEGMANS HOLDINGS BERHAD) is still new, so from my research, they are rapidly reinvesting their cash flow into growing their business.

Hopefully, we can see the result of the strategy in their future stock price.

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
Research by TA
Hold – Target Price RM1.33

“Still Suffering from the Soft Demand in the US”

No change to our target price of RM1.33, based on unchanged 8x CY24 EPS. Maintain Hold call on POHUAT. The robust balance sheet with a strong cash pile will help the group to sail through all the near-term headwinds.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

$POHUAT / 7088 (POH HUAT RESOURCES HOLDINGS BERHAD)
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 - Notice of Book Closure