Poh Kong's 4Q net profit slumps 65.5% to RM3 million

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KUALA LUMPUR (Sept 22): Jewellery retailer Poh Kong Holdings Bhd’s net profit for the fourth quarter ended July 31, 2014 (4QFY14) slumped 65.52% to RM3 million from RM8.7 million in the previous corresponding period in the absence of a gold rush and weak market sentiment.

Poh Kong told Bursa Malaysia in a filing that its revenue was down 31.4% to RM208.63 million from RM304.06 million in the same quarter last year.

Earnings per share shrank substantially to 0.73 sen from 2.12 sen a year earlier.

However, Poh Kong pointed out that its pre-tax profit was higher at RM8.06 million for the quarter against RM4.7 million in the previous corresponding quarter. The company attributed the higher amount to the stabilisation of gold price which had improved its gross profit margin.

Given the sharp drop in earnings, Poh Kong declares a lower dividend of one sen per share for the financial year ended July 31, 2014, compared with 1.4 sen per share the year before. The dates of entitlement and payment will be determined later.

For the full year, Poh Kong’s net profit fell 61.55% to RM13.06 million from RM33.97 million, while revenue fell 18.14% to RM798.79 million from RM975.78 million in the previous corresponding period.

Going forward, Poh Kong will continue its drive to build a larger market share by enhancing and differentiating its product offerings to larger and targeted market segments.

"We will also search for the right products at favourable price points and mix to add value to consumers," it said.

Shares of Poh Kong closed at 47 sen with 163, 800 units done.