KUALA LUMPUR (Jan 3): Poh Kong Holdings Bhd executive chairman and group managing director Datuk Choon Yee Seiong said on Monday (Jan 3) he expects a better performance in the financial year ending July 31, 2022 (FY22) on the back of strong demand for gold jewellery and investments.

“We believe we are in a good position to register higher revenue based on activity in the commodity markets and are poised to capitalise on demand when the Covid-19 situation improves,” he said at a press conference.

He noted that gold prices will continue to rise in tandem with demand, and are likely to reach an average of US$2,000 (about RM8,344) per ounce in 2022.

He also said the company’s sales are likely to rebound as the economy reopens.

“With the borders being opened now, people are allowed to travel [and] more occasions are being carried out. On the back of higher demand for gold and jewellery, we expect our sales to increase in tandem,” he said.

He also said the group is on track for a strong but predictably uneven growth.

“The group is poised to stage a robust post-recession recovery. It has been, for all of us, an unprecedented reality and I am happy to report that Poh Kong is well prepared for the next ‘new normal,” he said.

“It has been a challenging time for all corporations. I am fully aware that economic and financial predictions are but extrapolations of present trends. And we need to plan on an incremental basis rather than hold a long-term view,” he added.

He also said the corporation had already mapped out a clear strategic response to meet challenges ahead.

“The corporation has put in place strategies that would enable it to remain strong and resilient,” he said.

He also said the group’s expansion plans are on hold this year as it is focusing on boosting its sales across existing stores.  

Hit by the movement control order, Poh Kong’s net profit dropped 63% to RM5.42 million for the first quarter ended Oct 31, 2021 from RM14.64 million a year earlier.

Its quarterly revenue also fell 21% year-on-year to RM175.29 million from RM221.9 million.

At Monday's (Jan 3) noon break, Poh Kong's share price was unchanged at 80 sen, valuing the group at RM328.28 million.