Poh Kong exPects better results this year
KUALA LUMPUR: Poh Kong Holdings Bhd expects to outdo its financial year ended July 31 2017, fuelled by higher gold prices and improving consumer spending.
Its executive chairman and group managing director Datuk Choon Yee Seiong said gold price had risen 13.5 per cent from an average of US$1,200 (RM4,800) per ounce as at end-2016, to about US$1,300 per ounce in December last year.
“Today, gold is trading at around US$1,340 per ounce. Generally, we see its price rising further to between US$1,350 and US$1,400 in the short term. Hopefully, by year-end, it will reach US$1,500 per ounce,” he said after the company’s shareholders meeting, here, yesterday.
Also present were Poh Kong executive director Ermin Siow Der Ming, marketing manager Elizabeth Choon, group accountant Koh Sze Haw, corporate affairs, administration and human resources head Margaret Hon and business development manager Edison Choon.
Choon said gold price is on an upward trend as global demand is outpacing supply.
The weakening US dollar against the ringgit should translate to better margins for Poh Kong.
At press time, gold futures on the Comex division of the New York Mercantile Exchange was trading at US$1,340 dollars per ounce, reaching a new fourmonth high.
Gold and the US dollar typically move in opposite directions. A weaker dollar can boost the appeal for gold as an investment. When the dollar gains, gold tends to drop.
The US dollar has weakened broadly against major currencies including the ringgit, pushing up the prices of gold significantly in recent months.
This year many economists forecast Malaysia’s economy to grow at between four and five per cent.
“Typically, gold jewellery demand tends to grow in tandem with the gross domestic product growth. We’re hopeful of performing better this year,” said Hon.
On business expansion, she said Poh Kong has set aside RM15 million in capital expenditure for the financial year ending July this year to add on three stores — two of which are at shopping malls in Johor.
“Twelve of our 94 outlets are in Johor, including the two new ones. We see very positive results in Johor, partly due to customers from Singapore who have higher purchasing power,” said Hon.
Elizabeth Choon, meanwhile, said Poh Kong’s initiative to diversify its sales channel through online platforms like Lazada and 11street since 2012 was showing positive results.
“We will announce another collaboration with an e-commerce platform in the second quarter of this year,” she added. Ooi Tee Ching