Poh Kong expects better results for this financial year

Customer are busy choosing the latest gold at Kedai Emas Poh Kong, Petaling Jaya. Due to Gold prices are heading upwards and experts suggest they're going to keep rising.- Art Chen/ The Star..

KUALA LUMPUR: Poh Kong Holdings Bhd expects a better performance in the financial year ending July 31, 2017 (FY17) on the back of an increase in profit for the first quarter ended Oct 31, 2016 (Q1 FY17)

It recorded a higher pre-tax profit of RM2.43mil in the first quarter compared to RM487,000, while revenue was at RM185.47mil compared to RM172.3mil previously.

Executive director Ermin Siow Der Ming said the jewellery retail chain would continue to look for opportunities to expand further and grow market share, despite challenges faced by the industry.

“Among the initiatives are cost-control, product innovation, promotion of our online business and store expansion.

“We plan to open three to five stores with an estimated total capital expenditure, including inventories of between RM3mil and RM5mil for each store this year,” he told reporters after the group’s AGM in Kuala Lumpur on Monday.

Siow said Poh Kong would open two new stores in Johor, namely at Aeon Kempas and Paradigm Mall, adding the company had targeted a minimum 100 stores by year-end from 97 currently.

Meanwhile, marketing manager Elizabeth Choon said the company would consistently showcase products suitable for the current economic situation, to boost sales.

“We will also be expanding to more online channels in this regard,” she said.

Among Poh Kong’s current online channels are Lazada, 11Street and wedding.com.

At the AGM held on Monday, Poh Kong announced sales revenue of RM776.53mil for the financial year ended July 31, 2016 (FY16), lower when compared to the RM805.71mil recorded previously.

The group registered a lower pre-tax profit of RM17.48mil in the financial year under review from the RM8.65mil recorded in FY15.

The group said the decrease was mainly due to the decline in consumer demand for jewellery and gold related investment products.

As at FY16, the group’s net assets stood at RM466.01mil, higher than the RM459.1mil registered in FY15. - Bernama