Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 29): Furniture maker Poh Huat Resources Holdings Bhd’s net profit for the third quarter ended July 31, 2022 (3QFY22) jumped 64.2% to RM22.04 million from RM13.43 million in the same period a year earlier, boosted by strong turnover growth in its domestic operations.

Earnings per share rose to 8.32 sen from 5.07 sen previously, Poh Huat's bourse filing showed on Thursday (Sept 29). It declared a second interim dividend of two sen per share in respect of the financial year ending Oct 31, 2022, payable on Oct 28.

The group’s 3QFY22 revenue climbed 9.2% to RM166.52 million from RM152.49 million in 3QFY21, as production activities in both its Malaysian and Vietnamese operations ran smoothly on the back of sustained orders from its customers in North America.

In particular, the strong revenue growth in its Malaysian operations — up 190.3% to RM83.57 million from RM28.79 million previously — had offset the lower revenue contribution from Vietnam, which fell 32.9% to RM82.95 million from RM123.71 million.

“Malaysia’s operations registered strong turnover growth over the previous year corresponding quarter due to the production halt during last year MCO3.0. Shipment of furniture from our Vietnamese operations was however lower, as US customers reduced imports to clear their over-inventoried warehouses,” it said.

For the first nine months of FY22, Poh Huat’s net profit rose 69.14% to RM60.48 million from RM35.76 million in the same period a year ago, as cumulative revenue grew 6.8% to RM535.83 million from RM501.69 million.

Looking ahead, Poh Huat said it is cautious of the fluidity in the global economic condition and its impact on the group’s operations and financial results for the immediate future.

It also said that the worsened global economic outlook, inflationary pressures, lingering geopolitical tensions, together with labour supply restrictions and increase in wages would continue to put pressure on Poh Huat’s operations.

“However, the strengthening of the US dollar should cushion the profitability of the group,” it added.

Poh Huat shares closed unchanged at RM1.38 on Thursday, valuing the group at RM384.1 million.

Edited ByTan Choe Choe
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