Vriddhi Consulting

Punit Khanna

Independent Insight Provider

Equity Bottom-Up

Poh Huat Resources Holdings / Equity Bottom-Up

<ul>
<li>Market capitalisation is less than cash on its books implying negative enterprise valkue</li>
<li>Leading integrated wooden furniture manufacturer from Malaysia with factories in Vietnam and Malaysia</li>
<li>Consistently profitable including COVID and has Balance Sheet to face downturn</li>
</ul>
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Market capitalisation is less than cash on its books implying negative enterprise valkue
Leading integrated wooden furniture manufacturer from Malaysia with factories in Vietnam and Malaysia
Consistently profitable including COVID and has Balance Sheet to face downturn

    
    Raising Money for Persons with Disabilities in Singapore
    For your kind consideration
    This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum.  We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.
    All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.
    To contribute, please visit this URL. 
    
    

Poh Huat Resources: Deep Value Propsition

External broker reports(aggregated public sources), Public Investment Bank Bhd

Public Investment Bank Bhd

External broker reports(aggregated public sources)

Public Investment Bank Berhad provides investment banking services. The Company offers corporate finance, banking, securities financing, capital market, treasury, and advisory services.

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<ul>
<li>Poh Huat’s 2QFY23 headline net profit fell by 81.6% YoY to RM4.3m, as its main customers continue to destock its inventory as well as a decline in furniture spending.</li>
<li>After stripping out non-core items, Poh Huat’s 2QFY23 core net profit came in at RM1.8m, bringing its cumulative 1HFY23 core net profit to RM16.5m.</li>
<li>Results were below our and consensus estimates, accounting for 29% of our full-year estimates. PS. Maintain Neutral. On a side note, Poh Huat declared a first interim dividend of 3 sen.</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


Poh Huat’s 2QFY23 headline net profit fell by 81.6% YoY to RM4.3m, as its main customers continue to destock its inventory as well as a decline in furniture spending.
After stripping out non-core items, Poh Huat’s 2QFY23 core net profit came in at RM1.8m, bringing its cumulative 1HFY23 core net profit to RM16.5m.
Results were below our and consensus estimates, accounting for 29% of our full-year estimates. PS. Maintain Neutral. On a side note, Poh Huat declared a first interim dividend of 3 sen.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poh Huat Resources Holdings Berhad - Furniture Demand Remains Weak

External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

<p>Chan Mun Chun Tel: +603-2167 9731 mcchan@ta.com.my www.taonline.com.my Following our conference call with management, we remain optimistic about POHUAT's prospects. Despite the temporary suspension of operations in Vietnam due to local movement control restrictions, the group has been able to resume operations in [...] Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. [...] 80%) : Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Chan Mun Chun Tel: +603-2167 9731 mcchan@ta.com.my www.taonline.com.my Following our conference call with management, we remain optimistic about POHUAT's prospects. Despite the temporary suspension of operations in Vietnam due to local movement control restrictions, the group has been able to resume operations in [...] Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. [...] 80%) : Displayed market leading capabilities in integrating ESG factors in all aspects of operations, management and future directions.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<p>Excluding a net exceptional loss of RM0.3mn, POHUAT's 9MFY21 core profit of RM35.5mn was lower than expected, accounting for 67.2% and 66.7% of ours and consensus' full-year estimates, respectively. [...] The improved performance was primarily due to the robust earnings performance of the Vietnam operations, which were able to ramp up productivity and furniture shipment. [...] The higher earnings performance was primarily due to higher PBT from the Vietnam operations, while the lower revenue was attributed to lower turnover in the Malaysia operations as a result of FMCO. Following the weaker-than-expected results, we reduce our FY21 utilisation rate assumptions for Malaysia and Vietnam operations from 88% and 93%, respectively, to 78% and 85%.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Excluding a net exceptional loss of RM0.3mn, POHUAT's 9MFY21 core profit of RM35.5mn was lower than expected, accounting for 67.2% and 66.7% of ours and consensus' full-year estimates, respectively. [...] The improved performance was primarily due to the robust earnings performance of the Vietnam operations, which were able to ramp up productivity and furniture shipment. [...] The higher earnings performance was primarily due to higher PBT from the Vietnam operations, while the lower revenue was attributed to lower turnover in the Malaysia operations as a result of FMCO. Following the weaker-than-expected results, we reduce our FY21 utilisation rate assumptions for Malaysia and Vietnam operations from 88% and 93%, respectively, to 78% and 85%.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Earnings were Largely Driven by Vietnam Operations

Malaysia

Poh Huat Resources Holdings Berhad is an investment holding company.  The Company, through its subsidiaries, manufactures and trades furniture and parts.

Price Gauge
52-week Range	0.00 - 0.00
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Poh Huat Resources Holdings (PHR MK)

Poh Huat Resources: Deep Value Propsition

Malaysian wooden furniture manufacturer has strong balance sheet and market cap below cash reserves, suggesting negative enterprise value.priced...

Punit Khanna

Poh Huat Resources Holdings Berhad - Furniture Demand Remains Weak

Poh Huat’s 2QFY23 headline net profit fell by 81.6% YoY to RM4.3m, as its main customers continue to destock its inventory as well as a decline in...

Public Investment Bank Bhd

Looking Forward to a Better Year Ahead

<p>Chan Mun Chun Tel: +603-2167 9731 [email protected] www.taonline.com.my Following our conference call with management, we remain optimistic about...

TA Securities Holdings Bhd

Earnings were Largely Driven by Vietnam Operations

Excluding a net exceptional loss of RM0.3mn, POHUAT's 9MFY21 core profit of RM35.5mn was lower than expected, accounting for 67.2% and 66.7% of...

TA Securities Holdings Bhd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Poh Huat Resources: Deep Value Propsition

​Malaysian wooden furniture manufacturer has strong balance sheet and market cap below cash reserves, suggesting negative enterprise value.priced...

Punit Khanna

Poh Huat Resources Holdings Berhad - Furniture Demand Remains Weak

Poh Huat’s 2QFY23 headline net profit fell by 81.6% YoY to RM4.3m, as its main customers continue to destock its inventory as well as a decline in...

Public Investment Bank Bhd

Looking Forward to a Better Year Ahead

<p>Chan Mun Chun Tel: +603-2167 9731 [email protected] www.taonline.com.my Following our conference call with management, we remain optimistic about...

TA Securities Holdings Bhd

Earnings were Largely Driven by Vietnam Operations

Excluding a net exceptional loss of RM0.3mn, POHUAT's 9MFY21 core profit of RM35.5mn was lower than expected, accounting for 67.2% and 66.7% of...

TA Securities Holdings Bhd

Malaysian wooden furniture manufacturer has strong balance sheet and market cap below cash reserves, suggesting negative enterprise value.priced...