I am a fundamental investor so I look at company performance. Over the past 12 years, the company had an average ROE of 9%. In comparison, the mean ROE of the Bursa furniture companies averaged 8%. So it outperformed a bit.

From a fundamental perspective, there is no reason for the price to double within a month. The property and construction sectors in Malaysia are still recovering from Covid and I don't expect immediate boost in any company results. Furthermore while oil prices were high, the Bursa energy services companies have yet to benefit. https://focusmalaysia.my/the-benefits-of-high-oil-prices-have-not-trickled-down-to-bursas-og-services-sector/. You can see the blog analysis of Naim, the property and construction sectors and even the oil & gas services sector. From a fundamental perspective, the stock is still undervalued. So it should go higher. But will it?

Several years ago, the Malaysian furniture sector profits were boosted with the weakening of the Ringgit. Refer to https://focusmalaysia.my/covid-19-doesnt-affect-performance-bursa-malaysia-listed-furniture-companies/. We may be going through the same forex situation. Does it mean that we can expect better performance from furniture companies like Poh Huat?

The Bursa furniture sector is a resilient one based on the blog analysis "Which are the better stocks in Bursa Malaysia furniture sector?" Over the past 12 years, the industry average ROE was 8%. In contrast, TAFI average ROE for the same period was negative 5%. Draw your own conclusion.

The company's revenue grew 5 fold in 5 years. Either it has a fantastic management team or it is too good to be true. You have to dig deeper to find the real picture.

In the mid 2010s, the Malaysian furniture sector benefited from the confluence of forex and growing economies in the exported countries. Refer to https://focusmalaysia.my/covid-19-doesnt-affect-performance-bursa-malaysia-listed-furniture-companies/. Today we have the forex tailwinds but I am not sure about the growing economies. So will the furniture companies be able to do as well this round>

One way to see whether a company is doing well is to compare it with the sector. I would look at the Bursa furniture sector as the basis for comparing Dominan. A furniture sector analysis is at https://focusmalaysia.my/covid-19-doesnt-affect-performance-bursa-malaysia-listed-furniture-companies/.

I carried out an analysis of the performance of the Bursa furniture sector over the past 13 years and this company was one screened for further investigation. If you want to see the details of the sector or the analysis of LEESK go to my blog.

https://focusmalaysia.my/markets/csc-steel-when-you-have-a-good-horse-the-jockey-is-not-critical/
If you go by this article, management may come and go but the business model will ensure that the company will always profitable.