KUALA LUMPUR (March 22): Poh Huat Resources Holdings Bhd has declared a 2 sen dividend, following a 25% growth in net profit in the first financial quarter ended Jan 31, 2017 (1QFY17) to RM17.67 million, from RM14.14 million in the same period last year.

Poh Huat attributed its better performance to higher turnover, besides a one-off gain from investment disposal of RM435,000, and and a recognised foreign exchange (forex) gain of about RM93,000, compared with forex losses of RM2.58 million in the previous corresponding quarter, it said in a stock exchange filing today.

The furniture trader's quarterly revenue climbed 8% to RM163.46 million, from RM151.06 million a year ago, amid better selling prices and higher ringgit sales proceeds realised from these sales.

Its performance was also boosted by the roll out of new Malaysian-made products, including panel based bedroom models, which has gained traction in the US.

The planned dividend is payable on July 21.

Moving forward, Poh Huat expects strong demand in the North American market, backed by the U.S. housing sector, which has supported furniture and home furnishing businesses over the last two years.

“Given the strengths in U.S. housing, we see demand for household furniture continuing over the next couple of years,” Poh Huat said. The company also expects growth in emerging markets and developing economies such as the Middle East, India and emerging Asia, to increase in 2017.

“The group is mindful [of] the competitiveness of the global furniture trade and global volatility, due to the prolonged economic downturn in Europe, low commodity prices, and recent escalation of social and security issues in the Middle East and Europe,” Poh Huat said.

Shares of Poh Huat gained 2.55% or 5 sen on Wednesday to close at RM2.01, giving it a market capitalisation of RM431.23 million.