KUALA LUMPUR (June 29): Poh Huat Resources Holdings Bhd saw its net profit climb 82.61% to RM12.7 million for the second quarter ended April 30, 2021 (2QFY21), from RM6.95 million a year earlier, on higher revenue from furniture shipments in Malaysia and Vietnam.
Quarterly revenue grew 36.6% to RM165.54 million from RM121.18 million, according to the furniture maker’s filing with Bursa Malaysia.
The group said its shipment of furniture in Malaysia increased 32% to RM66.68 million, from RM50.57 million in the previous year.
Meanwhile in Vietnam, the group’s operations continued uninterrupted with a whopping jump of 40% in shipment to RM98.86 million, from RM70.61 million a year ago.
“Demand for home and office furniture remained strong from the sustained orders from our US customers, in line with their priorities in securing shipments and maintaining adequate inventories, amidst tighter supply and longer lead time amongst manufacturers,” said Poh Huat.
On prospects, the group said its priorities remain with maintaining production activities for continuous supply to its customers, while it develops products to cater for the stay at home and work from home requirements.
“The above notwithstanding, the risk of infection remains, as we experienced a drastic rise in Covid-19 cases,” it added.
The lockdown in Malaysia, as well as rising number of Covid-19 cases in Vietnam which led to shutdowns of several factories, have again highlighted uncertainties pertaining to Covid-19-related interruptions and resumption of operations, said Poh Huat.
“At the same time, the shortages of shipping containers have made it more challenging for all in the supply chain to secure continuous production and shipping to customers,” it added.
Poh Huat’s share price closed unchanged at RM1.39 today, valuing the group at RM386.84 million.
