Friday 29 Mar 2024
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KUALA LUMPUR (Sept 21): Strong earnings growth momentum continues at Poh Kong Holdings Bhd. The company’s net profit leapt more than  five times in its fourth financial quarter ended July 31, 2017 (4QFY17) to RM14.32 million from RM2.84 million in the previous corresponding quarter, thanks to brisk sales.

Quarterly revenue grew 31% to RM259.98 million from RM198.35 million a year ago. In a filing with Bursa Malaysia today, Poh Kong said that the sharp rise of RM61.63 million in revenue was mainly due to the increase in demand for gold jewellery and gold investment products. Besides, higher retail gold prices and additional revenue contributed from new outlets also helped to boost its revenue in the financial quarter under review.

The company’s board has declared its first and final single tier dividend of one sen per share in respect of the financial year ended 31 July 2017 (FY17).

For the full financial year 2017 (FY17), net profit more than doubled to RM29.57 million from RM11 million in FY16. Revenue increased to RM876.99 million, up 13% from RM776.53 million a year earlier.

On its outlook for the financial year ahead, Poh Kong is optimistic in maintaining its growth and leading position in Malaysia despite more challenging and competitive conditions in the domestic jewellery market.

"Notwithstanding uncertainties in the global and regional economies, fundamentals in Malaysia remain resilient which have enabled corporate and industry players to meet their challenges and business performance.

"The group, being cognisant of the current market situation continues to review, revise and consolidate its business strategies to meet these challenges," it added.

Year to date, the stock has climbed 38.5%. At market close today, Poh Kong's shares went down 4 sen or 6% to 63 sen for a market capitalisation of RM262.62 million.

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