Hey Friend,
We are looking into a possible turnaround in the furniture stocks. According to The Edge interview with finance director of Latitude Holdings, Mr. Yeoh Joe Son, these are a few highlights from the articles:
Positive notes:
✅ Weakening of the ringgit
✅ Normalised raw material prices
Raw material prices have been stabilising since the Malaysian government imposed a ban on the export of rubberwood on July 1 last year. Rubberwood prices went as high as RM1,400 per tonne, but since the export ban, prices have normalised to around RM1,000 to RM1,100 per tonne.
Risks:
🚫 Hike in minimum wages
🚫 Highly dependent on foreign workers
Link to the article: http://www.theedgemarkets.com/article/worst-over-latitude-tree-says-director
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