China has a lot of furniture factories in Vietnam till Poh Huat and Latitude Tree can't compete with them. You can read their QRs (Malaysian factories) mentioning that stiff competition with China factories.
If u look at PoHuat's quarterly reports, Malaysian operation is doing fine but Vietnam operation's performance is deteriorating, mainly due to stiff competition from new China furniture manufacturing plant there, and higher operating cost such as increasing labour cost in Vietnam.
The trade war may benefit furniture manufacturers in Vietnam as a whole, but I wonder how much it can help PoHuat's deteriorating Vietnam operation..
yes, correct. According to Latitude boss, China manufacturers flooded the Vietnamese market (competing for export clients) and drove down price in past quarter. Apparently pohuat suffered also
Posted by Beza > Sep 28, 2018 08:30 AM | Report Abuse
China has a lot of furniture factories in Vietnam till Poh Huat and Latitude Tree can't compete with them. You can read their QRs (Malaysian factories) mentioning that stiff competition with China factories.
but all these should be a thing of the past already. With the US trade war cutting off closed to USD20 bil furniture export from China, Vitetnam based manufacturers (be it China or Malaysian owned) now have more orders than they can digest. The depressed pricing should be gone already
Icon8888 but all these should be a thing of the past already. With the US trade war cutting off closed to USD20 bil furniture export from China, Vietnam based manufacturers (be it China or Malaysian owned) now have more orders than they can digest. The depressed pricing should be gone already
Icon8888's comment is the most detailed and proper.expect furniture stocks to be darling stocks in late 2018.
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Posted by newbie911 > 2018-09-27 22:38 | Report Abuse
But why poh huat is dropping?