Poh Kong earnings down 41% in Q1

07 Dec 2018 / 19:28 H.

PETALING JAYA: Poh Kong Holdings Bhd saw its net profit in the first quarter ended Oct 31, 2018 plunge 41% year-on-year to RM3.16 million, from RM5.36 million previously due to fluctuations in gold prices.

The group’s revenue was 17% higher at RM258.36 million as compared to the revenue in the corresponding quarter last year of RM220.93 million.

The higher revenue was due to the increase in demand for gold jewellery and gold investment products and additional revenue contributed from new outlets in the current quarter under review, the group said in a Bursa Malaysia filing.

On its prospects, Poh Kong said it is optimistic that Malaysia’s economic growth will improve progressively with the government’s new direction for the economy, although retail sentiments still remain soft due to cautious consumer spending.

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 in economic uncertainties.

Barring unforeseen circumstances, the group said it is confident of its resilience to weather the challenges ahead for financial year ending July 31, 2019.