KUALA LUMPUR (Jan 17): Poh Kong Holdings Bhd is expecting to better the double digit growth in net profit achieved in its financial year ended July 31, 2017 (FY17) in FY18.

This comes with the extended upward trend in gold prices, as well as expectations of improving consumer demand, said Poh Kong executive chairman Datuk Choon Yee Seiong.

"Gold analysts are expecting [gold price] to be around US$1,350-US$1,400 [per ounce] in the short term," Choon said. He was speaking to reporters after the group's annual general meeting today.

"We are expecting FY18 to be better than FY17. Overall, the global economy is picking up, Malaysia included," Choon, who has seen a pickup in sales in the recent quarters, said.

The view is reflected in its financial results for first quarter ended Oct 31, 2017 (1QFY18), where net profit tripled to RM5.36 million on increased demand in gold jewellery and investment products. Revenue grew 19.1% to RM220.93 million, driven by its retail division.

Spot gold has risen by 2.97% since the beginning of the year, alongside several other precious metals, thanks to the weaker US dollar. At 1.35pm, it traded at US$1,334.99 per ounce.

At 1.37pm, Poh Kong fell 1 sen or 1.55% at 63.5 sen, giving it a market capitalisation of RM260.57 million.