KUALA LUMPUR (June 26): Poh Huat Resources Holdings Bhd (KL:POHUAT) on Wednesday reported a near 70% jump in quarterly net profit, driven by a gradual rise in orders from US customers for its Malaysian operations, primarily in the office segment.

This is in line with the increase in business activities and the progressive return to full-time working arrangements among US workers, said the furniture maker in a bourse filing.

Net profit for the company’s second quarter ended April 30, 2024 (2QFY2024) rose to RM7.23 million, up 69.84% compared with RM4.26 million in the previous year’s corresponding quarter, while revenue increased 13.74% to RM108.35 million, from RM95.26 million.

Poh Huat said the earnings were offset by lower orders from its Vietnamese factories, as US customers continued to clear excess inventories. “Demand for durable goods including household furniture were also low in recent months, following weaker economic growth in the US,” the company said.

For the first six months of FY2024, the company’s net profit rose 58.2% to RM17.53 million, from RM11.08 million a year earlier. Six-month revenue increased 11.5% to RM239.5 million, from RM214.79 million.

Poh Huat declared a second interim dividend of two sen per share, payable on July 23. This brings the year-to-date dividend payout for FY2024 to four sen per share, compared to seven sen in FY2023.

Looking ahead, Poh Huat anticipates reduced consumer spending on durable goods due to slowdown in the US economy, which will likely impact demand for durable household items, including furniture.

Shares of Poh Huat closed one sen or 0.69% lower at RM1.44 on Wednesday, giving the company a market capitalisation of RM400.75 million.