KUALA LUMPUR: The net profit of Poh Kong Holdings Bhd increased by 21.29 per cent to RM19 million for the first quarter ended Oct 31, 2023 (1QFY2024) from RM15.67 million in the corresponding quarter of the previous year, despite lower revenue.
According to a stock exchange filing made today, the increase in gold prices was a major factor in the higher earnings.
The company reported that lower demand for gold jewelry products combined with a lower mood in the market caused its quarterly revenue to drop 3.88 per cent to RM355.98 million from RM370.36 million.
Compared with the immediate preceding quarter, the company's net profit is about four times the RM4.98 million it made in 4QFY2023 while revenue rose 12.77 per cent from RM315.66 million.
The company projected that the Malaysian economy would grow in 2024 and that increased demand for gold and gold-related products would result from more robust and active trade.
Stronger and more dynamic trade activities will translate into a greater demand for gold and gold products, it said.
"An optimistic outlook must at the same time take cognisance of market corrections and global uncertainties. The group will continuously monitor the impact of the current uncertainties on our operations, uphold and honour our financial obligations, and evaluate our performance on a continuous basis," it said.
Poh Kong said that, barring unforeseen circumstances, the board of directors is confident that the company has put in place adequate measures to meet the challenges ahead for FY2024 ending July 31, 2024.
The company's shares closed at 84.5 sen, down 0.5 sen or 0.59 per cent, valuing the company at RM347 million.