Poh Kong Holdings Bhd (PKHB), Malaysia's largest jewellery chain store, hopes to sustain its sterling performance this year with the opening of between three and five outlets, supported by the strong demand for gold bullion and jewellery.
Executive Chairman and Group Managing Director Datuk Eddie Choon Yee Seiong said the board of directors remained positive of the group's performance and hoped to achieve better results this year.
"Moving forward, the demand for gold globally is still on the uptrend as such we were still expecting double-digit growth for gold bullion and gold bars, as a form of investment.
"So, there's still potential for us to perform better (this year)," he told reporters after the company's annual general meeting today.
He said although gold price was currently trending downwards, the outbreak of a war in Iran would actually see gold prices surging as much as 30 per cent.
"The gold price will be pretty choppy this year but if the Iran war starts, we will see gold prices surging ahead.
"War will give an advantage to this precious metal industry," he added.
Choon said demand for gold remained resilient over the long-term due to its intrinsic value, the Asian culture of giving gold as customary gifts and as a hedge against inflation and global currency risks.
"Demand for gold still remains resilient. In fact, when the price goes up, many investors go for gold bar and bullion as a form of investment," he added.
On the company's restructuring programme, Choon said:"The internal restructuring is for us to wind up some of the non-key subsidiaries and to consolidate our business to specific functions.
"Once the internal restructuring is completed, we will have PKHB as the sole propriety to manage and control the 100 retail outlets that we have today," he added.
Choon said the restructuring programme would also help the company improve its operations and efficiency and bring down the cost of maintaining subsidiaries.
"On top of the restructuring, we will also consolidate all our bank facilities. The internal restructuring will take between three and five years to complete," he said.
Updating on outlet expansion, Choon said PKHB would open its 101 outlet at Station 18, Ipoh, in March with an investment of more than RM5 million.
"We will also terminate our franchise agreement in Sabah. So far, we don't have any exposure in Sabah but we were looking to the near future to expand our business there," he said. -- Bernama
Executive Chairman and Group Managing Director Datuk Eddie Choon Yee Seiong said the board of directors remained positive of the group's performance and hoped to achieve better results this year.
"Moving forward, the demand for gold globally is still on the uptrend as such we were still expecting double-digit growth for gold bullion and gold bars, as a form of investment.
"So, there's still potential for us to perform better (this year)," he told reporters after the company's annual general meeting today.
He said although gold price was currently trending downwards, the outbreak of a war in Iran would actually see gold prices surging as much as 30 per cent.
"The gold price will be pretty choppy this year but if the Iran war starts, we will see gold prices surging ahead.
"War will give an advantage to this precious metal industry," he added.
Choon said demand for gold remained resilient over the long-term due to its intrinsic value, the Asian culture of giving gold as customary gifts and as a hedge against inflation and global currency risks.
"Demand for gold still remains resilient. In fact, when the price goes up, many investors go for gold bar and bullion as a form of investment," he added.
On the company's restructuring programme, Choon said:"The internal restructuring is for us to wind up some of the non-key subsidiaries and to consolidate our business to specific functions.
"Once the internal restructuring is completed, we will have PKHB as the sole propriety to manage and control the 100 retail outlets that we have today," he added.
Choon said the restructuring programme would also help the company improve its operations and efficiency and bring down the cost of maintaining subsidiaries.
"On top of the restructuring, we will also consolidate all our bank facilities. The internal restructuring will take between three and five years to complete," he said.
Updating on outlet expansion, Choon said PKHB would open its 101 outlet at Station 18, Ipoh, in March with an investment of more than RM5 million.
"We will also terminate our franchise agreement in Sabah. So far, we don't have any exposure in Sabah but we were looking to the near future to expand our business there," he said. -- Bernama
