Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
https://youtu.be/9cH5KKEOfck?si=jWwGvT_SHmbtQJ2X
Focus Lumber Berhad: Analyzing the RM31.7 Million Revenue Surge and US RV Demand @YZFinanceMY
Focus Lumber (5197) is back in the profit zone! 🪵📈
Focus Lumber Berhad just released its Q2 2026 results, and the "Plywood Story" has taken a major turn. After a challenging 2025, the Group has officially reported a turnaround to profitability.
Here is what every retail investor needs to know:
✅ The Big Numbers:
• Revenue: Doubled year-over-year to RM31.75 million (+101.2%).
• Profit After Tax: A turnaround to RM0.27 million, compared to a RM4.97 million loss in the same quarter last year.
• Cash Position: Strong financial health with RM48.17 million in cash and zero borrowings.
🤔 What Drove the Turnaround?
The recovery was fueled by higher sales volumes and better average selling prices (ASP) in US Dollars. Management also benefited from lower log prices and the absence of the heavy inventory write-downs that hurt them in 2025.
⚠️ The New Headwinds:
While the turnaround is positive, the road ahead looks "challenging":
1. US Demand Cooling: The US Recreational Vehicle (RV) industry—a key market—has seen its 2026 shipment forecast revised downward by 8.2%.
2. New 10% Tariff: A fresh 10% US tariff under Section 301 took effect on 24 July 2026, targeting Malaysian exports.
3. Port Congestion: Ongoing bottlenecks at the Sepanggar Bay Container Port in Sabah continue to delay shipments and revenue recognition.
The Bottom Line:
Focus Lumber has proven it can return to profit when volumes and prices align, but with new US trade policies and a moderating RV market, the next few quarters will be a test of their operational efficiency and strategic pricing
2 yrs ago, I sold all my flbhd for a small profit. fast fwd to 2 years now, the share price lost more than 50 percent and no dividend. what happened to the management?
I use 2 references for plywood companies - Eksons which is relying on 3rd party for its logs and Taann with its own logging operations. Eksons decided to exit the plywood business in Jan 2023 while Taann is still manufacturing plywood.
You can see that FLBHD ROE was better than both pre-Covid. Refer to https://i.postimg.cc/gkshNMqt/FLBH.png
Go here for more details of Eksons.https://www.i4value.asia/2023/10/eksons-is-now-value-trap-oct-2023.html#more
