PETALING JAYA: Following the weaker-than-expected results, TA Research is reducing the earnings forecasts for Poh Huat Resources Holdings Bhd
for financial year 2026 (FY26) and FY27 by 23.3% and 16.4%, respectively.
The research house said the reduction was made after factoring in lower utilisation rates in both of Poh Huat’s operations in Malaysia and Vietnam.
The furniture maker’s FY25 core profit declined 53.8% to RM16.6mil, while revenue fell 12.8% to RM414.8mil.
The weaker earnings performance was primarily due to softer sales orders from both the Malaysian and Vietnamese operations, following the imposition of tariffs by the US government on furniture imports.
Pre-tax profit from its Malaysian and Vietnamese operations declined by 55.6% and 50.5% to RM13.2mil and RM4.6mil, respectively.
A final dividend of two sen per share was declared, bringing the year-to-date dividend to eight sen per share (FY24: eight sen per share).
Poh Huat also declared a special dividend of one sen per share, which will be recognised in FY26 and paid to shareholders on Jan 30, 2026.
The research house said Poh Huat’s balance sheet remains solid, with zero debt and a net cash position of RM296.3mil or RM1.06 per share.
“We expect the US furniture sector to continue facing uncertainty as tariffs have negatively impacted the supply chain. Potential US interest rate cuts may help revive housing market activity, which would support furniture demand,” it pointted out.
Poh Huat would engage new customers to diversify its revenue base across other regions, while enhancing cost efficiency.
US President Donald Trump had expanded the scope of his reciprocal tariffs to furniture and related wooden products and starting Oct 14, a 10% tariff would apply to imported softwood lumber and timber and 25% to imported kitchen cabinets, bathroom vanities and upholstered wooden furniture.
The rates are set to increase on Jan 1, 2026 to 30% for upholstered wooden products and 50% for kitchen cabinets and vanities.
