Affin Hwang Capital downgrades Poh Huat, cuts target price to RM1.48

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KUALA LUMPUR (July 16): Affin Hwang Capital Research has downgraded Poh Huat Resources Holdings Bhd to “Hold” at RM1.53 with a lower target price of RM1.48 (from RM1.80) and said in tandem with the popularity towards affordable and ready-to-install furniture, it expects demand for Poh Huat’s panel-based furniture to remain robust.

In a note today, the research house said on the flipside, Poh Huat’s Vietnam operation will face headwinds due to intensifying competition.

“All in, we cut our FY20-21E earnings forecasts by 11-20%, whilst maintaining our FY19E forecast, as we foresee a challenging environment for Poh Huat’s Vietnam ops moving forward.

“Given limited upside to our new targt price of RM1.48, we downgrade Poh Huat to Hold from Buy,” it said.