PETALING JAYA: Poh Huat Resources Holdings Bhd posted a 49% jump in net profit to RM22.08mil for the fourth quarter ended Oct 31,2020, from RM14.83mil a year earlier.
This was driven by pent-up demand, especially from the US home and home-office furniture, due to the shift to working from home brought about by the Covid-19 pandemic.
In a filing with Bursa Malaysia, the furniture maker said its revenue for the quarter in review rose 13% to RM216.72mil from RM192.08mil previously.
“Production and shipment of furniture for both our operations in Malaysia and Vietnam continued to ramp up following the gradual resumption of production after the halt in March and April 2020, following the first wave of Covid-19 pandemic, ” it said.
“As reported previously, we received sustained, long-dated orders from US importers who have anticipated supply chain interruption due to the movement restriction imposed in most countries.
“Demand for home and home-office furniture, the mainstay of our operations, continued to be strong as the ‘stay and work from home’ precaution is expected to prevail in the foreseeable future, ” Poh Huat said.
Cumulatively, for the whole financial year ended 31,2020 (FY20), Poh Huat posted a 2% increase in net profit to RM51.91mil compared with RM50.90mil a year earlier.
Its revenue for FY20 was down by 6% to RM659.51mil from RM700.0mil previously.
Poh Huat announced a final single-tier dividend of two sen per share for FY20, which is recommended for the approval of shareholders at the forthcoming AGM.
The total dividends paid and proposed by Poh Huat in FY20 was nine sen per ordinary share.
Poh Huat said the US furniture market is recovering with the latest survey of residential furniture manufacturers and distributors continued to report positive market activities.
“At the recent High Point furniture fair, new orders in September 2020 were up 43% over September 2019 orders.
“This was followed by a 51% year-on-year increase in August, 39% increase in July and a 30% increase in June, ” the group said.