Poh Kong expects strong revenue growth

Publish date: Wed, 19 Sep 2012, 05:30 PM
Poh Kong Holdings Bhd, the largest retail jewellery chain in Malaysia, expects revenue growth of between 25 per cent to 30 per cent for its current financial year, from the RM692.419
million recorded previously.

This is given the company's encouraging performance in the first three quarters of its financial year.

"For the three quarters, we (Poh Kong) already exceeded the total
revenue achieved for the last financial year.

"This was mainly contributed by the opening of new stores and an increase in sales at previously existing ones, as well as the rise in gold price," said its Executive Director, Ermin Siow.

Speaking at a media briefing on the "Overview of Gold Demand Trends" here today, he said the company allocated 10 per cent of revenue for investment purposes.

On expansion, he said Poh Kong plans to showcase its products on the global market, in the near future.

"I think we will look at starting up retail outlets overseas first in Asean countries, before actually exporting our products," he added. Bernama

Labels: POHKONG

Discussions
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King Kong73

well done poh kong...you go and start expanding..

2012-09-19 20:06

Eric29

But it share can't grow up

2012-09-19 21:11

lcng123

If Compare to Tomei, I think Tomei more attractive with dividend 3.5sen pa (dividend yield 4.67%). Poh Kong's dividend 1.4sen pa (dividend yield 2.85%)

2012-09-19 23:44

kcchongnz

If you look at Tomei's cash flows statement, there is negative cash flows from operations most of the years. This means that Tomei has to borrow money even for its working capital, not to mention that it needs more borrowing to pay its interest of its huge amount of loans (160m), and for expansion of its business (capital expenses). So the dividends the shareholders received every year obviously come from more borrowings. What a stupid way for company to pay dividend and surprisingly shareholders are happy about it! Poh Kong is different. It has positive cash flows for the last three years from operations. It even has free cash flows after capital expenses of about 10 m last year which is used all to pay dividend.

2012-09-20 11:55

King Kong73

wow..wht is tomei mgt thinking paying dividend when cash flow is negative...it is unethical.

2012-09-20 17:37

kcchongnz

king kong, there is nothing ethical or unethical to borrow money to pay dividend. That is what most shareholders want and the management gives to them and they are damn happy about it without even knowing that the money come from borrowings. There is actually another thing. Dividend paid out are subjected to company tax which in actual fact come from shareholders pocket. What a stupid way to try to satisfy shareholders with borrowing to pay dividends. Tomei is not the only one. Many other companies do the same thing.

2012-09-20 18:12

tonylim

can trust cina apek accounting and financial reporting?

2012-09-20 18:22

King Kong73

trust the auditor

2012-09-20 22:19

tonylim

Kong, i have seen how the managers give discounts to my wife who is a regular at poh kong for their diamond promotion. sometimes i wonder if the diamond inventory belongs to the owner or poh kong

2012-09-20 22:26

King Kong73

haa..i dunno how they manage their inventory and buy gold in bulk from the miners...they must have a good system to be able to determine at what cost and when gold jewellery that was made when gold price was only us$700-800 and sell them to retail at current gold price of us$1600-1700. Maybe they stockpile gold and made to order...but i think most probabaly yr wife is a good negotiator when it comes to buying gold too get huge discount.

2012-09-21 08:54

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