KUALA LUMPUR (March 29): Stronger furniture demand from North America lifted Poh Huat Resources Holdings Bhd's net profit for its first quarter up 50.94% to RM10.3 million from RM6.83 million in the corresponding quarter a year ago.

The better earnings for the three months ended Jan 31, 2024 (1QFY2024) were also due to higher other income of RM1.71 million,  mainly due to interest income of RM1.47 million, as opposed to other expenses of RM5.49 million that it recorded a year before.

Earnings per share came in at 3.89 sen in 1QFY2024, versus 2.58 sen a year before, its bourse filing showed.  

Quarterly revenue rose 9.71% to RM131.14 million from RM119.53 million.

“The higher turnover was mainly due to the gradual pick-up in orders from our US customers for both our Vietnam and Malaysia operations as US importers began to replenish their inventories,” it said.

On prospects, Poh Huat said it has received more orders in recent months and expects this "to progress in the months to come".  

“The US furniture market is on slow recovery trajectory with importers and retailers clearing their excess inventories,” it said, adding the US economy remains resilient and seems to have shrugged off concerns of an inflation-induced recession.  

At Friday's closing bell, Poh Huat’s share price closed unchanged at RM1.48, bringing the group a market capitalisation of RM412 million. Over the past one year, the stock has gained 14%.