- PTB released weak Q1 2023 results that are in line with our expectation. Q1 2023 revenue and core NPAT slumped 18% YoY and 48% YoY, respectively, and were slightly weaker QoQ due to seasonality.

- Q1 2023 wooden furniture sales slumped 22% YoY. PTB’s current order backlog can meet production to July. Apart from suffering from high customer inventory, wooden furniture is of big-ticket sizes and dependent on the US housing market. Consumer demand for these products is more discretionary and set to recover relatively slow, in our view.

- On the other hand, stone revenue advanced 17% YoY thanks to export customers shifting from competitors to PTB’s quartz. However, stone GPM compressed from 31% in Q1 2022 to 27% in Q1 2023 as PTB’s quarry and factory became less efficient due to quick capacity expansion.

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