Poh Kong’s Q4 earnings up more than fivefold

PETALING JAYA: Poh Kong Holdings Bhd’s net profit for the fourth quarter ended July 31, 2017 jumped more than five times to RM14.32 million from RM2.84 million a year ago due to higher profit from operations and lower finance costs.

In a filing with Bursa Malaysia today, Poh Kong said its profit from operations for the quarter was RM17.65 million compared with RM9.40 million a year ago while finance costs were lower at RM2.89 million compared with RM3.87 million a year ago.

Taxation during the quarter was also lower at RM436,000 compared with RM2.68 million a year ago.

Revenue for the quarter rose 31.1% to RM259.98 million from RM198.35 million a year ago due to higher demand for gold jewellery and gold investment products, higher retail gold prices and additional revenue from new outlets during the quarter.

The group has recommended a first and final single tier dividend of 1 sen per share amounting to RM4.1 million.

For the full year ended July 31, 2017, Poh Kong’s net profit more than doubled to RM29.57 million from RM11.01 million a year ago while revenue rose 12.9% to RM877 million from RM776.53 million a year ago.

Moving forward, it is optimistic in maintaining its growth and leading position in Malaysia despite challenging and competitive conditions in the domestic jewellery market. It will continue to review, revise and consolidate its business strategies to meet the challenges.

Poh Kong’s share price fell 5.97% to close at 63 sen today with a total of 2.25 million shares traded. Its market capitalisation stood at RM258.52 million.