a beautiful sunset follow with a beautiful sunrise, in business world just how you find your niche in the market, as a businessman myself i believe Poh Huat is one of them...don't tell me you going to stay in a hse or office without furniture
With market average PE of ard 8, the fair value for this share should be 2.00. If we take the PE at 8.5 should be 2.15. Given the optimistic of the management on next quarter on this statement
The demand for the Group’s product continue to increase in recent months. Shipment of panel based products to the US increased substantially over the last 6 months while shipments of home furniture from our Vietnamese factories remained robust. The Group has received sustained orders and expects this to continue for the remaining financial year.
I only can foresee that the next quarterly result gonna top the market estimate again. With such amazing growth, it's good to accumulate the share now for the next quarter. The share will go up to 2 again very soon
it's time for it to break 2.00 tmrw !!! it should stay above 2.00 given the sustained demand from US market. Once the next quarterly result is out, it should starts to break new high again
Well what I wanna say is even so called Analysts made mistakesss. No wrong to be conservative and called the Q2 tonne traditionally poor quarter as any unexpected like now will boost the market sentiment. History is history, what we look for is future.
Results Review. Poh Huat’s 2QFY10/17 net profit jumped 174% YoY taking 1HFY10/17 net profit to MYR28.3m (+57% YoY). The stronger 1HFY10/17 results were mainly attributable to: 1) a 13% YoY increase in revenue arising from higher shipping volume of furniture shipped from both Vietnamese and Malaysian operations; 2) a 3.2ppts expansion in PBT margin; and 3) a 0.9ppts dropped in effective tax rate to 16.9%. No dividend was declared for the current quarter.
In 1HFY10/17, PBT contribution from Malaysia operation jumped 84% YoY increase due to 1) a 22% YoY increase in revenue as a result of higher shipment of new products to the US (panel based bedroom set) as well as a stronger USD (USD/MYR averaged MYR4.39 in 1HFY10/17 vs. MYR4.10 in 1HFY10/16); and 2) a 5.2ppts expansion in PBT margin to 15.7% (1HFY10/16: 10.5%).
Meanwhile, Vietnamese PBT jumped 20% YoY thanks to greater emphasis on higher end products and improvement in production efficiency and plant utilization rate. PBT margin expanded by 0.9ppts to 10.0% (1HFY10/16: 9.1%) while revenue jumped 9% YoY.
Growth will be driven by expansion. Moving forward, earnings growth will be driven by expansion. For Vietnam operations, the group has just commissioned a new 2-storey furnishing line and a warehouse in Sep 2016 (affected by fire incident in August 2015). This is expected to increase the production and storage capacity by 20%. For Malaysian operations, Poh Huat has introduced a panel-based bedroom sets to cater for US market. Note that Poh Huat is also a proxy to strong USD play as 90% of its exports are to US and Canada.
Valuation. So far, only one broker covers the stock. The last rating was a Buy with a target price of MYR2.51. At current price, the stock is trading at 7.9x consensus FY10/18 EPS of 24sen, lower than its 3-year historical average PER of 8.9x. Note that the group is also sitting on a net cash of MYR32.9m or 15.4sen which is equivalent to 8% of share price. (source: Maybank)
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....
wltan22
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Posted by wltan22 > 2017-06-15 11:39 | Report Abuse
a beautiful sunset follow with a beautiful sunrise, in business world just how you find your niche in the market, as a businessman myself i believe Poh Huat is one of them...don't tell me you going to stay in a hse or office without furniture