Poh Kong registers RM11.72m profit for 1QFY13
Business & Markets 2012
Written by Ahmad Kamarul Anwar of theedgemalaysia.com
Tuesday, 18 December 2012 19:27
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KUALA LUMPUR (Dec 18): POH KONG HOLDINGS BHD []'s net profit for its first quarter ended July 31, 2012 (1QFY13) contracted by 33.9% year-on-year to RM11.72 million on the back of RM194.73 in revenue, citing fall in demand of gold products.
In the corresponding quarter last year, the group registered a net profit of RM17.74 million on the back of RM230.65 million in revenue. However, when compared to the previous quarter, Poh Kong's net profit surged 23% from RM9.54 million with RM204.72 million in revenue.
The group's basic earnings per share slashed to 2.85 sen per share in this quarter, from 4.32 sen year-on-year.
In a filing to the bourse, Poh Kong said its profit before tax (PBT) for the quarter under review was RM15.9 million, while the previous corresponding quarter registered a PBT of RM25.82 million.
"The decrease in PBT was mainly due to the decrease in revenue and the fluctuation in gold price, resulting in a thinner profit margin from gold revenue," said the company.
Poh Kong's main revenue driver is its retail segment. The manufacturing segment supplies the finished gold jewellery to the retail segment.
"For the current financial year, the group will continue its drive to build market share by enhancing and differentiating its product offerings to its targeted market segments," said Poh Kong on its prospects.
Thus, the group is actively evaluating various opportunities and initiatives, in order to provide new product designs that will attract customers.
The group said it remains cautiously optimistic on its performance throughout this financial year, as the country's economy remained resilient while business and consumer sentiments have been affected by the global economic uncertainties.
"However, consumer sentiment can change with steady economic growth and as a result, lead to more consumer confidence and domestic consumption, including spending on luxury products such as jewellery.