Latest news with #PohHuat
New Straits Times
12 hours ago
- Business
- New Straits Times
Poh Huat earnings under pressure amid cost surge, tariffs
KUALA LUMPUR: Furniture manufacturer Poh Huat Resources Holdings Bhd is likely to see softer near-term earnings, weighed down by persistent inflation, rising operating costs, and the appreciation of the ringgit, according to Public Investment Bank Bhd (PublicInvest). The company's key export market, the United States, has seen buyers take a cautious stance after having front-loaded orders in anticipation of higher tariffs. "This is worsened by the fact that customers are now adopting a wait-and-see strategy after they had front-loaded orders ahead of higher tariff implementation. "On a positive note, a slight rebound in office furniture orders is expected next quarter, as some customers have confirmed orders and are expediting their shipments within the 90-day tariff grace period," it said. PublicInvest has also revised Poh Huat's financial year 2025 to 2027 (FY25-FY27) earnings forecast downwards by approximately 20-50 per cent. It said this is to factor in the persistent inflationary pressures, rising operational costs and global trade uncertainties stemming from the imposition of import tariffs by the US. The firm has maintained an "Underperform" call on Poh Huat, with a lower target price of RM0.90 from RM1.16 previously. Poh Huat's headline net profit for the second quarter (2Q) of FY25 declined by 92.0 per cent year-on-year (YoY) to RM0.6 million. The sharp decline was attributed to lower orders and shipments of office furniture from its Malaysian operations, higher material and labour costs, and a decline in net other income due to a foreign exchange loss of RM1.9 million, compared to a gain of RM2.3 million in the same quarter last year. Excluding non-operating items, Poh Huat's first half (1H) of FY25 core net profit of RM10.9 million came in below PublicInvest's and consensus estimates at 28.7 per cent and 32.8 per cent of full-year forecasts, respectively. "The discrepancy in our forecast was mainly due to the lower-than-expected contribution and higher operating costs from the Malaysian operations," PublicInvest noted. The group's revenue also declined to RM98.3 million in 2Q25, mainly due to reduced office furniture shipments from Malaysia, as customers had front-loaded orders ahead of the second presidency of Donald Trump and anticipated trade barriers. Its home furniture shipments from Vietnam also remained weak, with some US customers holding back orders in April 2025 due to new import tariffs. Nevertheless, Poh Huat had declared a second interim dividend of two sen for the financial period.
Yahoo
5 days ago
- Business
- Yahoo
Poh Huat Resources Holdings Berhad (KLSE:POHUAT) Is Due To Pay A Dividend Of MYR0.02
Poh Huat Resources Holdings Berhad (KLSE:POHUAT) will pay a dividend of MYR0.02 on the 24th of July. Based on this payment, the dividend yield on the company's stock will be 7.5%, which is an attractive boost to shareholder returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Based on the last payment, the company wasn't making enough to cover what it was paying to shareholders. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. Looking forward, earnings per share is forecast to rise by 111.9% over the next year. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 47% which would be quite comfortable going to take the dividend forward. Check out our latest analysis for Poh Huat Resources Holdings Berhad Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the dividend has gone from MYR0.025 total annually to MYR0.08. This means that it has been growing its distributions at 12% per annum over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Poh Huat Resources Holdings Berhad's EPS has fallen by approximately 16% per year during the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, while some might be pleased that the dividend wasn't cut, we think this may help Poh Huat Resources Holdings Berhad make more consistent payments in the future. The company isn't making enough to be paying as much as it is, and the other factors don't look particularly promising either. Overall, the dividend is not reliable enough to make this a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've identified 3 warning signs for Poh Huat Resources Holdings Berhad (1 is a bit concerning!) that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
