Poh Huat Resources Holdings Bhd has reported a sharp decline in net profit for the second quarter ended 30 April 2025 (2QFY2025), citing softening demand from the United States and elevated input costs as key pressures on its earnings performance.
The group posted a net profit of RM575,000 for the quarter, marking a significant 92.05% year-on-year drop from RM7.23 million recorded in the same period last year. This represents Poh Huat’s weakest quarterly result since the fourth quarter of FY2024, during which the company incurred a net loss of RM3.54 million.
Revenue for the quarter declined by 9.24% to RM98.33 million, compared with RM108.35 million in 2QFY2024. The group attributed the contraction primarily to reduced orders of office furniture from its Malaysian operations. Management noted that several customers had front-loaded their purchases in the preceding financial period, driven by policy uncertainty following the re-election of Donald Trump as US president.
Demand from the group’s Vietnam-based operations remained subdued as well. Shipments of home furniture were impacted by the imposition of new US import tariffs, prompting some American customers to delay their orders in April.
Despite the challenging operating environment, Poh Huat declared a second interim dividend of two sen per share, payable on 24 July. This brings total dividends declared year-to-date to four sen per share.
The group highlighted escalating raw material and labour costs as further pressure points, compounded by fixed factory overheads and lower capacity utilisation in both its Malaysian and Vietnamese production facilities. Gross profit margins were notably affected as a result.
Foreign exchange movements also weighed on the company’s bottom line. Poh Huat recorded a forex loss of RM1.8 million for the quarter, contributing to a reduced net other income of RM700,000, compared with a forex gain of RM2.28 million and net other income of RM5.78 million in 2QFY2024.
For the cumulative six-month period of FY2025, net profit declined by 42.65% to RM10.06 million, down from RM17.53 million in the corresponding period a year earlier. Revenue for the half-year stood at RM234.59 million, a slight decrease of 2.05% from RM239.49 million previously.
Looking ahead, Poh Huat said it remains vigilant in monitoring developments in US trade policy, acknowledging that the industry continues to operate in a state of flux under the Trump administration.
Shares in Poh Huat closed one sen or 0.93% lower at RM1.06 on Friday, valuing the company at RM295 million. The stock has declined 27% over the past twelve months.
-The Edge
