KUALA LUMPUR: Poh Kong Holdings Bhd has returned to the black with a net profit of RM24.02 million in the third quarter (Q3) ended April 30, 2021, from a net loss of RM2.31 million a year ago due to higher revenue and cost control initiatives.
In its filing with Bursa Malaysia today, the company said revenue more than doubled to RM364.19 million from RM112.46 million last year due to higher demand for gold investment products, such as gold bars, wafers and gold jewellery items.
Last year, the company was not allowed to operate until May 4, 2020 when the government imposed movement control order (MCO) 1.0 on March 18, 2020.
This resulted in a sharp decrease in revenue in the corresponding quarter last year.
For the first nine months of the financial year 2021 (FY21), Poh Kong's net profit increased 204.6 per cent to RM50.02 million from RM16.42 million in the same period of FY20.
Revenue rose 43.54 per cent to RM817.49 million from RM569.51 million last year.
Poh Kong did not declare a dividend for Q3 2021.
On prospects, Poh Kong will continuously monitor the impact of the current uncertainties on its operations, financial obligations and performance while external factors are largely beyond its control.
The economic stimulus package and the low overnight policy rate (OPR) mitigate the negative impact of this prolonged pandemic and provided a more accommodative monetary environment in which to operate, the company said in the filing.
In addition, along with the scheduled progress in the vaccine rollouts, Malaysia's economy is expected to return to positive growth.
Barring unforeseen circumstances, the board of directors is confident that the company has put in place adequate measures to meet the challenges ahead for the financial year ending July 31, 2021.