KUALA LUMPUR: Gold and jewellery manufacturer Tomei Consolidated Bhd predicts gold prices will still have ample room to rise this year despite market uncertainty.
Managing director Datuk Ng Yih Pyng said the retail gold price had increased three times since January.
He said there is still demand among Malaysian consumers who have purchased gold as an inflation hedge and the tradition of gifting gold for weddings, anniversaries, and birthday festivities.
Ng shared that the recent Hari Raya Aidilfitri celebrations had witnessed an increase in people exchanging gold for cash.
"Despite a slight trade-in surge this year, we see this as usual during the Raya season, when customers bring in old jewellery for new jewellery, and there is now a surge in selling gold for cash.
"There will always be a demand for gold as an inflation-proof asset, and I believe the company will remain profitable in the financial year ending December 31, 2023 (FY23)," he said, adding the market value of gold would remain positive.
Ng said the company would pass the cost on to consumers if the price rises. Likewise, if the price falls, it would lower the gold selling price.
Tomei's net profit more than doubled to RM65.89 million in FY23, up from RM32.77 million in the previous year.
Revenue increased to 32.37 per cent to RM974.31 million from RM736.07 million.
The company declared a four-sen per share first and final dividend, the highest since 2007.
The dividend proposal was one of 14 resolutions unanimously approved at the company's annual general meeting (AGM) on Friday.
Despite not stating their sales target, Tomei will continue to increase sales of gem-set jewellery, including diamond, emerald, ruby, sapphire, and pearl, in conjunction with the brand's 55th anniversary in 2023.
Ng said that as Malaysia's economy grows, there will be some inflation and a reduction in disposable income. However, the company aims to remain profitable.
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