PETALING JAYA: Inflationary pressures from a high interest rate environment are anticipated to put a dent in Muar-based furniture manufacturer Homeritz
Corp Bhd’s earnings in the near term.
Public Investment Bank Research (PIVB Research) said it remains cautious on the group’s near-term outlook as it expects interest rates to remain elevated on high inflationary pressures.
“We believe this would continue to dampen furniture demand going forward. Despite the challenging near term outlook, we are still optimistic about the group’s long-term prospects, stemming from its commitment to developing new products and innovative designs to cater to a more diverse customer base,” the research house added.
PIVB Research, which is reiterating its “neutral” call on Homeritz with an unchanged target price of 51 sen, said the company is also actively looking to streamline its costs by diversifying into a wider network of suppliers, which should help to lower input costs.
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