Poh Kong 2Q net profit surges 159% on higher gold prices

KUALA LUMPUR (March 24): Poh Kong Holdings Bhd reported a 159% jump in net profit for the second quarter ended Jan 31, 2022 (2QFY22) to RM29.35 million from RM11.35 million in the same quarter last year, contributed by the uptrend in gold prices.

Earnings per share rose to 7.15 sen in 2QFY22 compared with 2.77 sen in 2QFY21, the gold jeweller and retailer’s filing with Bursa Malaysia on Thursday (March 24) showed.

Poh Kong’s quarterly revenue climbed 75.66% to RM406.46 million from RM231.39 million. This was due to higher demand for gold jewellery and gold investment products amid the gradual reopening of the economy and market sentiment, aided by higher retail gold prices.

Compared with the immediate preceding quarter, Poh Kong’s net profit surged 442% from RM5.42 million in 1QFY22 as revenue jumped 132% from RM175.29 million previously.

For the six months ended Jan 31, cumulative net profit rose 33.73% to RM34.77 million from RM26 million a year earlier. Six-month revenue was up by 28.34% to RM581.75 million against RM453.29 million in the prior year.

On prospects, Poh Kong said the revival of the economy would undoubtedly translate into a gradual recovery, with higher global growth and sustained policy support providing a further boost to the overall economy.

“The group will continuously monitor the impact of the current uncertainties of our operations, uphold and honour our financial obligations and evaluate our performance on a continuous basis,” it explained.

The group is confident that it has put in place adequate measures to meet the challenges ahead for the financial year ending July 31, 2022.

Poh Kong shares finished up two sen or 2.42% to 84.5 sen on Thursday, giving it a market value of RM344.66 million. It saw some 1.2 million shares traded.

Source: TheEdge - 25 Mar 2022