Poh Huat Q3 net profit down on higher tax expenses

PETALING JAYA: Poh Huat Resources Holdings Bhd’s net profit for the third quarter ended July 31, 2016 fell 5.97% to RM9.99 million from RM10.63 million a year ago, due to higher income tax expenses.
In a filing with Bursa Malaysia yesterday, Poh Huat reported higher income tax expenses of RM2.28 million for the quarter compared with RM1.66 million a year ago.
The group said manufacturing margins for its export sales were lower as US dollar selling prices for its product normalised against the sustained weakening of the ringgit.
“Our operating margins in Vietnam were also slightly lower due to the temporary shift in the composition of mid-range products shipped during the quarter in line with the US consumers’ preference,” it added.
Revenue for the quarter rose 11.69% to RM125.65 million from RM112.50 million a year ago due to higher shipment from the Malaysian and Vietnamese operations.
The group declared a third interim single-tier dividend of 2 sen per ordinary share in respect of the financial year ending Oct 31, 2016 for the period ended July 31, 2016, payable on Dec 15, 2016.
Moving forward, the group anticipates better purchasing power and sustained demand for its products on the back of improving economic sentiments and business confidence among its customers, coupled with the continued strength of the US dollar.
“The recent completion and commission of our reconstructed finishing line cum warehouse facilities in Binh Duong, Vietnam, has added 20% to the capacity of the Binh Duong plant and more importantly enhanced our manufacturing capabilities and efficiency,” it said.
It said that the modernised finishing line will enable it to take on higher range products that will contribute more meaningfully to the group’s bottom-line from financial year ending Oct 31, 2017 onwards.
For the nine months ended July 31, 2016, net profit rose 20% to RM28.01 million from RM23.33 million a year ago while revenue rose 22.12% to RM383.17 million from RM313.75 million a year ago.