POHUAT (7088): Financials Summary, Key Results, Growth

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Cash in dividend cheers

2023-04-21 09:41

FinanceInRealLife

Post removed.Why?

2023-05-16 19:19

ITreeinvestor

We slash our earnings forecast for FY23F-25F by 23-42%, to account for the decline in household spending. Our TP is reduced to RM1.16

2023-06-27 11:56

frankco

2023-06-27 15:15

NatsukoMishima

https://www.klsescreener.com/v2/news/view/1173477

Malaysia furniture = glove 2.0!

2023-07-07 12:06

mlmkcomic

Several years ago, the Malaysian furniture sector profits were boosted with the weakening of the Ringgit. Refer to https://focusmalaysia.my/covid-19-doesnt-affect-performance-bursa-malaysia-listed-furniture-companies/. We may be going through the same forex situation. Does it mean that we can expect better performance from furniture companies like Poh Huat?

2023-07-12 08:13

ITreeinvestor

to account for the decline in household spending. Our TP is reduced to RM1.16 after rolling over our valuation base year to 7x

2023-08-10 14:39

IB like Public bank doesn't know how to value POHUAT. In March 23, its TP is 1.50. In June 23, it lowered its TP to 1.16, which is just silly, when Net cash+ST investment holding is worth 1.04. Nevertheless, thanks to IB, we are able to collect POHUAT on the cheap, where its investment thesis is a bit better than "FD+". Short term, POHUAT returns should be lower than EPF, but in the medium term, one day, the stock price should rise and give better returns than EPF over the next 3-5 years. Currently, stock unlike to rise fast, because: (1) Management is ultra conservative with its dividend policy and the way it runs its business, prefering to conserve cash, despite cash growing to record levels, and (2) Management anticipates soft market for its revenue in medium term (which is likely to be conservative). So, if you have extra funds (like my portfolio profits) to park at rates better than FD, then, POHUAT is a safe choice. Long term dividend is probably around 7-8 sen, so, at 7 sen, the annual Dividend Yield is solid 5.3%. Even at 1.33 current price, it is still an "Accumulate" in my book if one doesn't have an exposure, but must have 5 year out look at the least to earn higher than 5.3%. Short term like FYE2023, I think POHUAT will show the lowest earnings in past 8 years and so, DPS may drop to say 5 sen, hence, short term I think we will see a very conservative Dividend Yield by Management notwitstanding record level Net Cash, but should still beat FD rates.

2023-10-15 13:17

Here's a history of POHUAT Net Cash:
2015: 37m
2016: 43m
2017: 71m
2018: 71m
2019: 120m
2020: 199m
2021: 146m
2022: 249m
2023Q3: 288m.

IB can suppress price as much as they like, but eventually, that Net Cash is going to keep growing i.e. the yearly dividend of 5-8 sen should be extremely safe in the longer term.

The furniture business (home and office) is a solid one. They make money every year. Mr Market has been sleeping but one day, it's going to wake up. Even if it continues to sleep for next 5 years, we get FD+ returns and if 8 sen dividend, EPF returns and the downside is extremely limited long term, but the upside, despite Mr market tendency to sleep for years, will one day wake up and reward us with higher returns.

2023-10-15 13:41

Personally, I would not rush in to collect, because I think this year's EPS will look bad, potentially showing its worst EPS. So, looking forward to next 6 months, I think there's good chance for price to drop, hence, I would layer my entry if I didn't have any exposure. Just add at successively lower price. Simple investment thesis.

2023-10-15 13:44

So, in summary, I don't like this stock for 3 reasons:
1. I expect 2023FYE to report a low EPS, possibly record low EPS - it's going to cause a lot of people to feel pessimistic.
2. Volatile Net cash - typo, 2020 Net Cash is 182m. So, 2021, its Net Cash dropped quite a lot, from 182m down to 146m. Hence Net cash is not enough reason to invest, as Net Cash can drop.
3. Perpetually conservative company. Waiting for the company to become more realistic might never happen, hence, not good enough reason. Need catalysts to unlock this. The MSWG is still not asking the right questions, allowing Management to get away with being ultra conservative.

2023-10-15 13:56

Disclaimer: Some of my figures mentioned might have some minor typo errors, so, do your own diligence, if you are worried about figures that are more accurate. However, the big picture conclusions (based on 1 or 2 significant figures) should remain unchanged. Buffett always say - the best investment thesis should jump out to you. This one doesn't, but its safety jumps up to me as there's massive margin of safety. Still, I would keep this stock as a small % of my portfolio, probably not larger than 4% ever.

2023-10-15 13:59

In case you're wondering what happened to the huge drop in Net Cash at FYE2021, I note that its Inventory rose from 93m to 127m. But a year later, inventory drop from 127m to 84m, boosting its cash balances substantially. So, this company requires one to hold at least a 2 year view. So, things will be worse in the coming months, but if you have a long term view and trust its management to boost business value, eventually, odds are good you'll be alright. However, not many investors are really that patient as returns will get worse first, AND, when it recovers is UNCERTAIN.

2023-10-15 14:08

Nemesis1093

I'm coming across this name for the first time. Can i check with fellow investors out there, has this company conducted share buybacks+cancellations in the past before?

2023-11-03 18:17

zen_2k

not that I recall, holding since covid started

2023-11-16 02:03

Ok at ada 0.02

2024-02-09 07:58

Post removed.Why?

2024-02-17 14:46

lcng123

USD-MYR hits 4.79 will benefit Pohuat in coming QR

2024-02-20 22:56

frankco

Poh huat enter Bull territoary

2024-02-26 10:14

Parking 1 mil here. Cheers!!

2024-03-13 12:05

Pohuat is my favourite

2024-03-13 15:54

Lai....lai.....lai.....

Big or small?

2024-03-14 08:23

The furniture sector shines as a bastion of stability, driven by consistent demand, diverse customer base, home improvement trends, e-commerce growth, innovation, and the inherent value of long-term investments. As consumers continue to prioritize comfort, functionality, and aesthetics in their living spaces, the furniture sector is poised to remain resilient and thrive in the years to come.

2024-03-14 08:27

lcng123

Pohuat share price slowly up. Sign of good coming result ?

2024-03-20 16:35

Downside well taken care of. This counter can only go....hehe

2024-03-20 16:39

Cash99isKing

Finally.
Need 2 catalyst for higher TP
1) good quarter
2) furniture wind

2024-03-20 22:28

kimchuant8

Good quarter results today!

2024-03-29 23:14

Last league, final lap to check into, after so many years in value ......

2024-04-06 22:10

Apa macam furniture

2024-04-07 18:46

POHUAT closed highest for the week (1.51) since last swing high in May 2022. Enough to edge my portfolio to make new all time high again today. Thank-you Mr Market!

2024-04-12 22:03

Last league.............................. can beat 1.75 ?

2024-04-13 08:08

apa macam....... goes back to 1.35 lah... may be next round to cabut ?

2024-04-21 19:54

cherry88

Who will be attending the AGM this Thur (25/4) ? Please share. thanks...

2024-04-22 11:10

Cash99isKing

Attended. In summary, company is not planning to distribute higher dividend as they are facing a lot of challenges, so need reserve more cash to cope with the potential risks 😕

2024-04-25 23:58

cherry88

No divident + Callenges = SELL

2024-04-26 09:50

Cash99isKing

Still have Dividend, just don't expect significant increment or special dividend despite pohuat having huge cash (at least for short term). Based on their answer is like this

2024-04-26 20:50

masak lar...........just wait lor if have bonus issue can also at least temporary jack up the share price

2024-05-01 07:31

calvintaneng

Time to buy Pohuat (Power Huat) was 2014

Now is time for Hexcap

Blog: CATALYSTS: FOR STOCKS TO GO UP THERE MUST BE STRONG CATALYSTS: THE MORE POWERFUL THE CATALYSTS THE MORE POWERFUL THE UPSURGE!

https://klse.i3investor.com/web/forum/forum-thread/608930947

2024-06-17 07:49

NatsukoMishima

Ikea has implemented a global pricing strategy that includes Ingka Group, an Ikea franchisee. It announced that it would invest 6.3 billion yuan in China over the next three years to lower its prices in the country.

Inter Ikea’s supply chain, which covers everything from raw materials up to the final mile – production, procurement, raw materials sourcing, in-house manufacturing, transport and logistics – makes products affordable without compromising on quality, sustainability, form or function, said the company.

“Our primary objective is to reduce costs across our supply chain,” said Waidzunas.

The goal is expected to be pursued through enhancing efficiencies, better utilisation of materials and accelerating automation initiatives

Malaysia furniture sector just like glove , beaten by China , hopeless !

2024-06-20 07:24

NatsukoMishima

Vstecs , ramhill , dnex , swify haulage , iwcity all are multibagger stocks , u should have in your portfolio not sunset furniture srctor just like malaysia glove !

2024-06-20 07:27

Can fetch some

2024-08-05 17:33

yeah maybe try luck below 1.30

2024-08-11 13:54

curiousq

24Q3 23Q3
Effects on foreign exchange translation (9,996,737) 232,713

Reversing forex gain

2024-09-12 21:08

lets get back to RM1.28

2 weeks ago