KUALA LUMPUR: Poh Huat Resources Holdings Bhd’s net profit almost tripled to RM10.49 million, or 9.96 sen per share, for the third quarter ended July 31, 2015 (3QFY15), against RM3.88 million or 3.64 sen per share in the previous year.

The stellar earnings performance is evident of the improved prospects of local furniture makers whose profit growth has been buoyed by the stronger demand from the United States as the property market is recovering and a strengthening US dollar. Revenue grew 26% to RM112.50 million, from RM89.12 million in 3QFY14. 

Poh Huat declared a second interim dividend of three sen per share.

In its filing with Bursa Malaysia, the furniture maker attributed the improved performance to higher shipments from its Vietnamese operations. “Shipment from our Vietnamese operations was significantly higher in line with the stronger recovery in the employment and housing market in the US against the lower shipment of furniture in the previous year’s corresponding quarter which was affected by the anti-China riots,” it said. The strengthening of the US dollar also improved margins for its Vietnamese and Malaysian operations. The group recorded a foreign exchange gain of RM3.4 million in 3QFY15.

For the nine months to July 31, net profit almost doubled to RM23.33 million from RM12.75 million a year ago, while revenue climbed 17% to RM313.75 million from RM269.06 million. The group said it remains mindful of the challenging global economy, in view of the slowdown in growth in China and Europe. 

“The group continues to adopt a collaborative approach with its long-term customers in terms of product development and manufacturing programmes, and an emphasis on financial discipline when dealing with suppliers to ensure availability of resources at stable prices,” it said.

This article first appeared in digitaledge Daily, on September 15, 2015.