Stronger gold prices lifts Poh Kong 3Q profit

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KUALA LUMPUR (June 20): Jeweller Poh Kong Holdings Bhd announced a 25% jump year-on-year in net profit for the third quarter ended April 30, 2019 (3QFY19). Its quarterly net profit leapt to RM5.39 million from RM4.31 million previously, riding on the back of an uptrend in gold prices.

However, quarterly revenue came in a marginal 1.7% lower at RM236.37 million compared with RM240.44 million a year ago, due to softer demand for gold jewellery products, according to its exchange filing this evening.

For the cumulative nine-month period (9MFY19), Poh Kong recorded a net profit of RM15.31 million, up 5.7% from RM14.48 million in the same period a year ago, while revenue grew 5.1% to RM768.65 million from RM731.35 million in 9MFY18.

Poh Kong said although retail sentiment still remains soft due to cautious consumer spending, the group is confident of its resilience to weather the challenges ahead for its financial year ending July 31, 2019.

“The group is positive that the demand for gold-related products will remain resilient and provide investors with a complementary investment option while at the same time, is a liquid asset and a safe haven during economic uncertainties,” it added.

Shares in Poh Kong closed 1.5 sen or 3.06% higher today at 50.5 sen, bringing it a market capitalisation of RM207.22 million.