KUALA LUMPUR: Poh Kong Holdings Bhd’s net profit tripled to RM5.36 million in the first financial quarter ended Oct 31, 2017 (1QFY18) from RM1.77 million a year ago, on increased demand for gold jewellery and gold investment products.
It also attributed its improved earnings to higher retail gold prices and additional revenue contributed from new outlets in the current quarter under review.
Earnings per share increased to 1.31 sen from 0.43 sen in 1QFY17.
Quarterly revenue grew 19.1% to RM220.93 million in 1QFY18 from RM185.47 million in 1QFY17, largely derived from the retail segment.
On prospects, Poh Kong said in a filing with Bursa Malaysia that it is confident of the group’s resilience to weather the challenges ahead for financial year ending July 31, 2018.
“The group is optimistic about 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,” it said.
“The group, being cognisant of the current market situation, continues to review, revise and consolidate its business strategies to meet these challenges,” it added.
Poh Kong’s share price closed up one sen or 1.67% at 61 sen yesterday, giving it a market capitalisation of RM250.32 million.