Poh Kong allots up to RM15 million for new stores in 2019

Choon is seen speaking to reporters after the company’s annual general meeting yesterday. — Bernama photo

KUALA LUMPUR: Jewellery retailer Poh Kong Holdings Bhd has allocated between RM9 million and RM15 million capital expenditure (capex) to open three new stores this year.

Executive chairman and group managing director Datuk Choon Yee Seiong said of the total capex, about RM3 million to RM5 million will be used for each of the stores, which are located at IOI Mall Puchong, Aeon Nilai and South Key Mall in Johor.

“With these new stores, Poh Kong to date has 95 outlets nationwide under various brands including retail concept stores,” he told reporters after the company’s annual general meeting yesterday.

Meanwhile, head of corporate affairs, administration and human resources Margaret Hon said gold prices were expected to be between US$1,300 and US$1,400 per ounce this year.

She attributed this to external factors such as the anticipation of a US-China trade war, US interest rate hikes, currency fluctuations, consumer sentiment as well as market uncertainty.

“However, we are optimistic about maintaining the performance of our 2018 financial year (FY2018) ended July 31, 2018 for FY2019, as now we can see the economy starting to pick up, coupled with the strengthening of the ringgit against the US dollar,” she said.

For FY2018, Poh Kong posted higher revenue of RM1.003 billion compared with RM876.99 million a year ago, driven by increased consumer demand for jewellery, gold-related investment products and contributions from new and existing outlets.

Profit after tax was 20.75 per cent lower at RM23.40 million for FY2018 compared with RM29.52 million in FY2017, due to fluctuations in gold prices and a weaker ringgit.

On another note, marketing manager Elizabeth Choon said the company would consistently showcase products suitable for the current economic situation and market demand, both in the jewellery retail chains and online platforms, to boost sales.

“To date, our retail chains contribute more to our revenue while online platforms contribute less than one per cent,” she said. — Bernama

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