Poh Huat Resources Holdings Berhad's Capital Allocation Trends Raise Concerns

Poh Huat Resources Holdings Berhad's return on capital employed (ROCE) has declined from 14% to 4.1% over the past five years. The company's ROCE underperforms the consumer durables industry average of 6.7%. Despite employing more capital, there has been no corresponding improvement in sales, suggesting that the investments are longer-term plays. The decrease in current liabilities to 8.2% of total assets may also have contributed to the ROCE drop.