POHUAT - Exports furnitures to US. POHUAT benefits as demand of home furnitures and office furnitures are recovering aligning with recovering US markets and higher demands from Canada.
I sold liao. Will come bck if TA allow. Hehe.. no worry pohuat strong in usd, i just bring my money to other counter earn some and come bck again ma... ahahhaa
We view the Malaysian furniture industry as a potentially undervalued sector which is poised for re-rating, driven by: (i) their high proportion of export sales, (ii) margin expansion on strengthening USD, (iii) sector-wide capacity expansion, (iv) long-term growth riding on the TPPA, and (v) healthy balance sheets. We peg the sector valuation at an average of 10.6x Fwd. PER, which is at a premium to board makers' average Fwd. PER of 9.5x as the sector shares similar positives (consistent EPS growth, steady margin expansion) but enjoys better fundamentals (higher dividend yields, stronger balance sheet positions). Our valuation is applied to annualised latest quarters' EPS, with adjustments for growth and seasonality. The resulting fair values indicate strong return potential for furniture makers averaging +15%. Among the furniture players, we see above-average return potential for: LATITUD (Fair Value: RM9.55; Total Return: 20%), LIIHEN (FV: RM4.01; TR: 55%), POHUAT (FV: RM2.54, TR: 34%) and SHH (FV: RM3.09, TR: 35%).
POHUAT - FV at RM2.54 (TR: 34.1% - upside: 31.5%, dividend yield 2.6%). We like POHUAT for its substantial QoQ earnings growth (+50%) on stronger US demand and better sales of higher margin products leading to QoQ net margin expansion from 9.4% to 11.3%. We also like POHUAT for its net cash position and consistent dividend payouts (5-year’s avg. payout ratio: 26%), while their plant expansion could lead to extended earnings growth going forward.
US market dropped 300 over points yesterday and rm is slightly improved against usd thus no a good news to pohuat today, can buy some if pohuat drops later
No worries. value investors holding tight on good fundamental stocks always gain more than speculators in the end. Some people seems like earn alot but in the end they still poor because in and out every day
no worry on Pohuat, this few weeks due to China stocks approach to bear market and affect Asian shares drop. Mostly will be affected. I'm always believe in Pohuat, good fundamental stocks. cheers up :)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Smart Investor
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Posted by Smart Investor > 2016-01-12 22:51 | Report Abuse
Tomorrow will go up again