PETALING JAYA: Malaysia’s furniture industry is expected to generate impressive earnings momentum in the second half of the year, driven by a structural demand shift on the US-China trade tension, pent-up demand for furniture in line with the work-from-home trend, as well as margin expansion on price hikes and improved utilisation.
UOB Kay Hian, in a sector report yesterday, highlighted that particleboard companies could also stage a turnaround to deliver spectacular earnings, riding on the robust demand, higher prices and favourable sales mix.
“Liihen, Homeriz and Poh Huat, which export mostly to the United States and Europe, will benefit. For smaller caps, Wegmans, which recently expanded its capacity, has huge growth potential to diversify its customer base and increase its product range.
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