KUALA LUMPUR (Sept 24): Poh Kong Holdings Bhd returned to profit in its fourth quarter ended July 31, 2020 (4QFY20), as it reported a net profit of RM8.01 million, versus a net loss of RM2.31 million in the immediate preceding quarter ended April 30, as its retail business gradually saw improvements following the relaxation of the Movement Control Order.

Quarterly revenue, which is mainly derived from its retail segment, grew 59% to RM179.3 million from RM112.46 million, with the group reporting an earnings per share of 1.95 sen compared with a loss per share of 0.56 previously.

On a year-on-year basis, net profit is down 24.2% from RM10.57 million in 4QFY19 while revenue fell 22.67% from RM231.86 million. EPS retreated to 1.95 sen from 2.58 sen.

The group has proposed a first and final dividend of 1.2 sen per share for FY20 — the same amount as FY19 — subject to shareholders' approval.

"The on-going global COVID-19 pandemic and the implementation of the Movement Control Order on March 18 had severely impacted the group's operations and businesses. However, effective May, the MCO was replaced by the Conditional MCO (CMCO), which allowed the group to resume operations under restrictive operating hours, strict rules and stringent standard operating procedures as mandated by the authorities. A further relaxation of restrictions in June  with the Recovery MCO (RMCO), saw a gradual return and improvement of sales.

"Despite the weak market sentiments, the group registered profit before tax in the current quarter at RM15.9 million compared with the profit before tax of RM16.98 million in the corresponding quarter last year, which amounted to a slight decrease of RM1.075 million. This was due primarily to the uptrend of gold prices and the cost control initiative efforts together with streamlining and strengthening of its operations and business," Poh Kong said in its quarterly results filing today.

For the full FY20, the group’s net profit slipped 3.36% to RM24.43 million from RM25.28 million a year earlier, while revenue declined 25.15% to RM748.8 million from RM1 billion.

On prospects, Poh Kong said it will continuously monitor the impact of the prolonged pandemic and the uncertainties it caused on its operations, financial obligations as well as performance, adding that the external factors are largely beyond its control.

“The group will continue to ensure and review all appropriate and timely measures to remain agile and flexible to meet these challenges,” said Poh Kong.

Shares in Poh Kong closed 3.09% or 2.5 sen lower at 78.5 sen today, giving it a market capitalisation of RM322.13 million. It saw some 2.43 million shares done. Year to date, the stock is up 57% from when it was trading at 50 sen apiece.