Poh Kong cautiously optimistic on 2016 growth

KUALA LUMPUR: Jewellery retail chain Poh Kong Holdings Bhd is cautiously optimistic on its 2016 growth despite registering a decrease in profit for the first quarter ended Oct 31, 2015 (Q1FY16).
"Post GST (Goods and Services Tax) implementation, the whole (retail) market was impacted negatively. Consumer sentiment has actually turned quite bad," its executive director Ermin DM Siow told reporters after the group's 13th AGM today.
"But bear in mind, a lot of people are buying gold and jewellery for certain occasions. If they need to buy, they have to buy," he added.
For Q1FY16, Poh Kong's net profit dropped 89% to RM336,000, from RM3.09 million in the previous corresponding quarter, mainly due to decrease in sales volume.
Revenue decreased 11% to RM172.3 million, compared with RM194 million previously, mainly due to a weak market sentiment, decreased in demand of gold investment products and jewellery products.