Poh Huat Resources Holdings Bhd(Sept 20, RM1.55)Reiterate buy recommendation with a higher target price of RM2.05: Poh Huat Resources Holdings Bhd is acquiring a detached warehouse cum office showroom in South Dandenong (approximately 30km south-east from Melbourne’s central business district), Australia, from JSNJ Investment Pty Ltd for some A$4.25 million (RM13.27 million). The rationale for the acquisition is to expand into a new target market from its existing operational bases in Malaysia, Vietnam and South Africa. The property comprises a 2,807sq m single-storey warehouse with a 315sq m office with retail-showroom facilities. We understand that for a start, the group intends to market its panel-based office furniture and bedroom sets under its own brand. Furthermore, product design adopted for the Western market in the US market is commonly accepted by Australians.

Source: The Edge Markets September 21, 2016 02:15 UTC