Stock With Momentum: Poh Huat

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Poh Huat Resources Holdings Bhd (-ve)
FURNITURE manufacturer Poh Huat (Fundamental: 2.1/3, Valuation: 2.4/3) saw its share price rise to an intraday high of RM3.05, after releasing stellar 3QFYOct2015 results on Monday. The stock pared some gains to RM2.95 at market close.

Net profit for 3QFY2015 soared 174% y-o-y to RM10.6 million, boosted by higher margins from economies of scale as well as forex gains of RM3.4 million. Notably, net profit for 9MFY2015 totalled RM23.3 million, accounting for some 98% of 

FY2014’s full year net profit.  

The company also declared a second interim dividend of 3 sen per share, which will go “ex” on September 30. This brings year-to-date dividends to 6 sen. 

A pioneer in high-tech eco-friendly manufacturing, using natural veneer, solid and reconstituted wood-panels, Poh Huat has manufacturing plants in Vietnam and Malaysia. 

The stock trades at a trailing 12-month P/E of 11.2 times and 1.64 times book. 

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This article first appeared in digitaledge Daily, on September 17, 2015.