POH HUAT - NEW NORMAL IN EARNINGS?
The trade war is still an issue that is dangling without resolve. While US and China are still trading barbs instead goods and Malaysia is still without an economic direction, where is the light at the end of the tunnel? Ringgit is weak, lack of economic activities, a hole in the budget with looming up trending petrol prices and exit of foreign funds. Expect the ringgit to weaken further with the current no development of PH, a party known now as a NATO party. Further internal in fighting will only make clear the aimless direction to no where. With ringgit envisioned to stay the same level or worse, expectations that the export stocks are going to well again. With that, lets look at Poh Huat an undervalue furniture company with presence in Vietnam. Exports from Malaysia to the USA is expected to increase by 20% as a result of the trade war, so one of the beneficiary is the furniture industry with further enhancements by factories in Vietnam. Last year 2018 Poh Huat achieved an eps