PETALING JAYA: Poh Huat Resources Holdings Bhd
’s earnings continue to be dragged by softer demand amid weakness in the US housing and furniture markets as recent results fall below expectations, according to TA Research.
“We expect the outlook for the US furniture market to remain uncertain, as tariffs, ongoing geopolitical tensions and supply chain disruptions continue to dampen consumer discretionary spending on furniture,” it said.
For the first half (1H26) of its financial year 2026 (FY26), Poh Huat recorded a core net loss of RM11.8mil, after excluding a foreign-exchange loss of RM3.5mil, which came in below the research house’s full-year profit forecast of RM19mil.
Revenue for 1H26 also fell by 34.4% to RM154mil from RM234.6mil a year ago.
TA Research attributed the weaker earnings to softer US demand, which remains affected by persistent inflation and weaker economic outlook.
The group’s core net loss for the quarter widened to RM10.1mil from RM1.7mil, while quarterly revenue declined by 28.6% to RM64.1mil.
“Earnings were further impacted by the weaker US dollar against the ringgit. The Malaysian operations were the hardest hit, with the sharp decline in office furniture orders resulting in a pre-tax loss of RM15.4mil versus a pre-tax profit of RM10.6mil a year earlier,” the research house said.
Meanwhile, Poh Huat’s Vietnamese operations saw its pre-tax profit drop 72.7% to RM0.6mil from RM2.3mil previously.
The group declared a first interim dividend of one sen per share, which brought total year-to-date dividends to two sen per share, compared to four sen previously.
TA Research has cut its earnings forecasts for FY26, FY27 and FY28 by 55.9%, 19.6% and 10%, respectively.
Adjustments were made to reflect lower utilisation rates in both Malaysian and Vietnamese operations, it said.
However, the research firm noted that Poh Huat’s balance sheet remains healthy, with zero debt and a net cash position of RM259.6mil or 93 sen per share.
“Meanwhile, the group will continue to focus on cost optimisation initiatives, including further automation and workforce rightsizing, to enhance operational efficiency and preserve margins,” it added.
