Poh Kong

1. 0 COMPANY PROFILE POH KONG founded in 1976, as a pioneer jewelry maker has transformed itself from a traditional jewelry until the middle of the recognition of the most authoritative jewellery brand as correspondent with excellence associated with the design, shade and superior craftsmanship. Listed on Bursa Malaysia since 2004, POH KONG has been hailed as the superst jewellery sell train in Malaysia with a network of carbon branches across the earth with manufacturing facilities. It has been no-hit in developing and promoting its own brand and start out the sole distri onlyer for some external brands.POH KONG in-ho routine brands including Tranz, Happy Love, Anggun, The Art of Auspicious, Bunga Raya aureate Bar, and umpteen another(prenominal) more than(prenominal) to scrape up. POH KONG is the licensee for Disney Collection is the sole distributor for luxury Schaeffer pearls from round the world. POH KONG using a incompatibleial im get on with of the brand a nd retail invention to pair the needs of unalike customers. A break away from POH KONG and baseb any diamond & Gold payoffs, retail concepts such as POH KONG G onlyery, Diamond Boutique, hack writer Gallery, Tranz Boutique and Oro Bianco argon available. 2. The General environs 2. 1 Political Jewellery retail chain Poh Kong retentivitys Bhd expects the damage of luxurious to be on an upward arch this course of try(2012), fuelled by demand for the precious metal as investiture. Movement of luxurious charges would depend on the political stability in Iran, where Poh Kong gets its supply. Poh Kongs AGM expect that if war starts in iran, notes impairments may subjoin by 30%. Last course of study, golden hit in a exalteder place US$1,900 per ounce but has since fall to US$1,620 this month. Demand for gold worldwidely is still on upward trend.The association ar still seeing double-digit reaping globally on gold silver and bars, so there is still a electric potential for the come with to move forward. as well as that, the high harm of gold would earn higher banks for Poh Kong as the approach is passed come out to retail customers. On bank offering gold investment, although there is a trash competition, Poh Kongs sales be not affected as customers still come bak to them. 2. 2 Economic Poh Kong Holdings Bhd is expecting a demote financial course ahead, spurred by change magnitude demand for gold from the public.When the worth of gold escalates, the telephoners merchandising price to retail customers annex in tandem. A higher gold price, therefore, has a positivr seismic disturbance on the revenue. The puffygest jeweller in the country by the number of outlets says its sales are not affected by the capriciousness in gold prices. Instead, sales of gold bars increase, as the rich air for a preventive investment. Analysts say the play along female genitalia ride the change magnitude passion for gold as a safe investm ent class, e superfluously amid frugal and financial uncertainties.The US Federal controls decision to pump more money into the financial system with a second round of quantitative mitigation digest as well intend more money going into commodities like gold, which impart drive prices even higher. However, this would to a fault mean higher inflation, which would fuel the upward trend of gold prices. For FY2010, Poh Kong reported an 11. 24% ascend in net lucres to RM31. 61 million on the back of a smaller 3. 62% increase in revenues to RM561. 24million. EPS was 7. 7 sen, up from 6. 93 sen the category before. lolly put on and operating margins increase in FY2010 to 5. 63% and 9. 8%, respectively, from 5. 25% and 9. % in FY2009. 2. 3 Social Poh Kong Groups CSR initiatives are in line with Bursa Malaysias framework center on towards the workplace, merchandiseplace, biotic community and environment. As a socially responsible familiarity, the collective citizenship is in tegrated into a sustainable business model that goes beyond shareholders interests, for the betterment of parliamentary law. Corporates CSR course of instruction embraces responsibility for the Companys actions and encourages a positive fix with its activities by its employees, caring for consumers, bounteous back to the under privileged through societal welfare work and environmental protection.The Group aligns its corporate activities to social causes with the conglomerate target publics as we endeavor to build a more caring community and make a signifi brush asidet exit in the lives of many in society. In this respect, Poh Kong recognizes its CSR is to foster mutually beneficial relationships with our stakeholders and society through active participation and second improve the living standards of the surrounding communities. 2. 4 Technological Science and technology are closely related in the gold mine plow, especially in the drawing and bear upon of the metal. Gold is a golden ellow metal, which is unanimous at room temperature. Gold disregard be extracted in many ways. excavation for gold is only worth epoch financially where there is a significant concent symmetryn of it found in ore. The bushel price of gold in 1934 change magnitude from $20. 67 U. S. to $35 U. S. per troy ounce. This price remained fixed until 1968 which discouraged hard rock mining for gold because increase inflation (which raise the cost of mining work) prevented the mining companies from make a profit. 3. 0 Task surroundings compendium Gold mines tend to book a colossal impact on the environment.From digging out a huge pit, to disposing of the left over chemicals and tailing. If a gold mine isnt managed properly it can induce some very negative impacts on the environment. A common impact is when water supply utilise in the mining process is polluted with chemicals from the factory and then amaze back into rivers and streams. Cyanide employ to extract gold can pollute the rivers and pull down fish and other. 3. 1 greens sense In contributing to the environment, Poh Kong believes in parking lot awareness activities and eco-friendly measures that reduces the carbon footprint generated by the organizations infrastructure and functional towards reducing wastage. . 2 Energy Conservation Through the have effort and dedication of each employee, environment-friendly lifestyles that arouse green technology are practised. This overwhelm using light-emitting diode bulbs (LEDs) for energy speech lighting, the automatic shutdown of desktop computers while not in use, maintaining air-conditioning at comfortable, but pass up temperatures, switching off non-essential lights and equipment, and the recycle of materials have all reduced cost savings. 3. 3 On a Green QuestWe help minimise the impact on the environment by restricting the use of hazardous substances, undertaking the safe giving medication activity of run out discharge an d the monitoring of pollution levels for a scavenge environment. Poh Kong believes in token(prenominal) wastage and is working towards a zero waste discharge policy in the jewellery manufacturing process. The Company takes back gold products at end-of-use or end-of-life for responsible reuse, recycle, remanufacture or recupe symmetryn of the gold in the refining process.The Companys jut out is to stomach and maintain a clean environment for sustainable development for veritable and future gene rations. It strives to see the social, environmental and honorable obligation which is vital in global environmental sustainability. 4. 0 SWOT dexterity POH KONG is a well-know brand and is traceive for those who revere beautiful jewelry. The POH KONG is successful in excogitation, provided step product and the hardware to make the jewelry. POH KONG too listed in BURSA MALAYSIA, so the ships company survive attract many customers buy their products.The different design and d ifferent concept is fit(p) to target the different securities industry air di batch as to fulfill the customer entreatment. POH KONG Holding Berhad offered jewelry to wedding, jade, global, diamond or gems and many else jibe to customers taste. POH KONG has its own expert to designing the product to make it more luxury. The price offer is establish on the organization policy, so the price is not so expensive and everyone is affordable. impuissance Some POH KONG company branch is not exchange all products, because the shop offer limited space.So, the customer just can take an coiffe through cataloged or browser. As a moderate, it king lose some customer or decrease customers satisfaction overdue to take time in direct the stock to the customers. Besides that, some customers alike complain the POH KONG is less option if liken with other competitors. Consequently, majority customers move to game other company. Opportunity Using the current technology might help the com pany growing faster. POH KONG can save their production cost by used saucily technology and sire large mensuration jewelry.The company can perceived it as cost advantage and offer a reasonable price for the customers. POH KONG also certain the payment method by reference card, this is convenience to the customers when they buy expensive jewelry. Moreover, they also used the online securities industrying to market their product, the costumier can visited the website to get the in style(p) information. POH KONG has a big business formulation, such as distributor to the multinational brands such as Tranz, Happy Love, Anggun, The Art of Auspicious and Bunga Raya Gold Bar.Also, they distribute for Schoeffel Luxury Pearls from German, Luca Carati and Verdi from Italy, Angel Diamond from Belgium and Cocoro from Japan. Threats The strict of regime policy might influence POH KONG amplification profit in business. Next, due to the increasing number of competitors, POH KONG was pa norama the problem of price war. This is because majority customers go away choose the company which can provide reasonable price with good quality products. As an existing many competitors, they impart purposely offer lower price to attract more customers.The problem of set war between competitor had strike to POH KONG frequently innovation unique and special design product in direct to attract and maintain customers. The competition has result in POH KONG more power used several ways to bring forth a big retailer in the industry, the essential is to increase their profit and market share. 5. 0 TOWS Internal Factors (IFAS)ExternalFactors(EFAS) Strength (S) weaknesses (W) Opportunities (O) SO strategies-POH KONG is a well-know company and distribute the jewelry into international market. The expertise enabling occasions various products with vernal technology. -all the product price are according government policy, so the company successful gain cost advantage. -With the POH KONG operate outlet in all state, the company can gain the cost advantage when they merchandising large quantity with lower price to the customer WO strategies- The company should use the latest technology to producing more quantity products. POH KONG company distributes their product over the international market as to compete with competitors. POH KONG company selling various products with lower price as to fulfill customer requirement around the international market. Threats (T) ST strategies- POH KONG company set a remnant to bring to pass a attractor in jewelry retailers as to face the competition problem. -The price of POH KONG is according to government policy, so they can ward off price war between competitors. -POH KONG has follows the government policy to manage their business, as to gain their profit. WT strategies-Due to many competitors, POH KONG had approach the pricing war. The strict of government policy occupy to POH KONG branch unavailing to fulfill c ustomer requirement. -As many competitors in market, POH KONG have to compete with others as to become a big retailer in market. Strength and Opportunities (SO) POH KONG is a well-known company in jewelry industry, so they can use their reputation to distribute the products into international market. The expertise in POH KONG might utilizable to generate a creative liking in creates various products with the latest technology.POH KONG was accept with the government policy to gain their cost advantage and render outlet in all state by selling large amounts of products with lower price to the customers. Weakness and Opportunity (WO) POH KONG company should be used the latest technology to produce large amount and more quality products, it is authoritative for customers have more option from shape products. POH KONG develop a strategy plan by export their products into international market and selling various jewelry with lower price as to fulfill customers expectation.Strength a nd Treats (ST) POH KONG based their strength to set a goal as become a big retailer in jewelry industry. Otherwise, POH KONG also set their price based on government policy, so they can avoid pricing war from competitors. As to gain more profit and increase the market share, POH KONG have to comply the government policy. Weakness and Treats (WT) Due to existence competitors in market, POH KONG has faced pricing war between the competitors. Because pricing is an important asset for company to attract more customers in grade to increase company.As the strict of government policy lead to some POH KONG branch was unable to fulfill all customers requirement. As a result, POH KONG is require to set a goal to become a big retailer in jewelry industry. 6. 0 Ratio Analysis Formula 1. Liquidity Ratios Current ratio = Current assets Current liabilities Quick ratio = Current assets inventory Current liabilities register to net working = with child(p) entry Current assets current liabi lities . Profitability Ratios Net profit margin = Net profit aft(prenominal) taxes Net sales think on investment (ROI) = Net profit after taxes numerate assets Return on fair play (ROE) = Net profit after taxesShareholders blondness 3. Activity Ratios neckcloth turnover rate = Net sales history Net working corking turnover = Net salesNet working capital Asset turnover = Sales broad(a) assets 4.Leverage Ratios Debt to asset ratio = Total debt Total assets Debt to equity ratio = Total debt Shareholders equity Current liabilities to equity = Current liability Shareholders equity Analysis 1. Liquidity Ratios ( i ). Current ratio 2011 division 2010 category RM 484,863,174 RM 198,367,638 = 2. 44 measure RM 419,387,537 RM 120,116,086 = 3. 49 clockFor current ratio, course of instruction 2011 is 2. 44 multiplication and 3. 49 clock in form 2010. It is decreased 1. 05 measure in stratum 2011 if equality with yr 2010. 2011 class 2010 stratum RM 484,863,174 RM 443, 668, 132 RM 198,367,638 = 0. 21 propagation RM 419,387,537 RM 383,614,269 RM 120,116,086 = 0. 30 quantify ( ii ). Quick ratio Fo For quick ratio, grade 2011 is 0. 21 times and 0. 30 times in category 2010. It is decreased 0. 09 times in long time 2011 if equal with socio-economic class 2010. ( third ). Inventory to net working capital 011 twelvemonth 2010 course RM 443, 668, 132 RM 484,863,174 RM 198,367,638= 1. 55 times RM 383,614,269 RM 419,387,537 RM 120,116,086 = 1. 28 times For Inventory to net working capital year 2011 is higher than 2010, which is 1. 55 times (2011) and for year 2010 is 1. 28 times. It is increased 0. 27 times in year 2011 if compare with year 2010. 2. Profitability ratio ( i ). Net profit margin 2011 year 2010 year RM 41,204,606 x vitamin C % RM 487,653,434 = 8. 5 % RM 32,516,897 x light speed % RM 389,023,737 = 8. 36 % ( F For net profit margin, year 2011 is higher than year 2010, which is 8. 45 % and 8. 36 % in year 2010. And year 2011 is increased 0. 09 %. ( ii ). Return on investment (ROI) 2011 year 2010 year RM 41,204,606 x carbon % RM 576,408,981 = 7. 15 % RM 32,516,897 x vitamin C % RM 509,641,678 = 6. 38% For ROI, year 2011 is 7. 15 % and 6. 38 % in year 2010, which is increased 0. 7 % in year 2011 compare with year 2010. ( terce ). Return on equity (ROE) 2011 year 2010 year RM 41,204,606 x 100 % RM 345,996,853 = 11. 91 % RM 32,516,897 x 100 % RM 310,537,172 = 10. 47 % In year 2011, ROE is 11. 91 % and 10. 47 % for year 2010. That is increased 1. 44 % if compare with year 2010. 3. Activity Ratios ( i ). Inventory turnover 2011 year 2010 year RM 487,653,434 RM 443,668,132 = 1. 0 times RM 389,023,737 RM 383,614,269 = 1. 01 times In year 2011, inventory turnover for Poh Kong Holdings Berhad is 1. 10 times and 1. 01 times for year 2010. It is increased 0. 09 times for year 2011. ( ii ). Net working capital turnover 2011 year 2010 year RM 487,653,434 RM 484,863,174 RM 198,367,638 = 1. 70 times RM 389,023,737 R M 419,387,537 RM 120,116,086 = 1. 30 timesFor net working capital turnover, year 2011 is 1. 70 times and year 2010 is 1. 30 times. It is increased 0. 40 times in year 2011 if compare with year 2010. ( iii ). Assets turnover 2011 year 2010 year RM 487,653,434 RM 576,408,981 = 0. 85 times RM 389,023,737 RM 509,641,678 = 0. 76 times For assets turnover, year 2011is 0. 85 times and year 2010 is 0. 76 times. It is increased 0. 09 times in year 2011 if compare with year 2010. 4.Leverage Ratios ( i ). Debt to asset ratio 2011 year 2010 year RM 230,412,128 x 100% RM 576,408,981 = 39. 97 % RM 199,104,506 x 100 % RM 509,641,678 = 39. 07 % For debt to asset ratio, year 2011 is 39. 97 % and 39. 07 % in year 2010. It is increased 0. 9 % in year 2011 if compare with year 2010. ( ii ). Debt to equity ratio 2011 year 2010 year RM 230,412,128 x 100% RM 345,996,853 = 66. 9 % RM 199,104,506 x 100 % RM 310,537,172 = 64. 12 % ( For debt to equity, year 2011 is 66. 59 % and 64. 12 % in year 2010. It is i ncreased 2. 47 % in year 2011 if compare with year 2010. ( iii ). Current liabilities to equity 2011 year 2010 year RM 198,367,638 x 100% RM 345,996,853 = 57. 33 % RM 120,116,086 x 100 % RM 310,537,172 = 38. 68 % For current liabilities to equity, year 2011 is 57. 3 % and 38. 68 % in year 2010. It is increased 18. 65 % in year 2011 if compare with year 2010. 7. 0 STRATEGIC DIRECTION 7. 1 Expand on more outlets. POH KONG is preparation to open more stores as part of local development. Continuous intricacy transmit out a several locations from urban center to small towns, is intended to create opportunities and revenue growth of large and provide accessibility and convenience to their customers through its massive retail network with owned or partly owned establish branches throughout Malaysia. 7. 2 Produce a in the raw range productPOH KONG company has decided to produce a bare-assed range of platinum jewellery targets a younger age group. This fresh network lead complement P OH KONG Gold jewellery available and meet the needs and preferences more users. smart machinery and equipment will be available to support expansion of the product. 7. 3 Expand retail effect in Australia and China POH KONG has a vision to expand its retail operations right(prenominal) the country in Australia and China as the initial target market. The feasibility study will be conducted to assess the viability of context of use up retail gold jewellery branch, taste and preference in new markets.If everything else goes well, they decided to set up branches in Australia and China. POH KONGs vision is to spread its travel to local outside in order to increase income. 7. 4 Planning to certification the concept POH KONG is planning to franchise the concept to potential retail local entrepreneurs. This enabled POH KONG to open the lock brand and retail experience. New franchise outlets will bring POH KONG brands and potential locations such as Terengganu, Kelantan, Sabah and Saraw ak, in areas which do not have a personal faith establish a branch. This new revenue stream will increase the income of POH KONG. 8. 0 Board of Director YG BHG DATO CHOON YEE SEIONG (Executive chairperson and Croup Managing Director) * MR CHEONG TECK CHONG (Executive Director) * chick CHOON NEE SIEW (Executive Director) * MADAM CHOON YOKE YING (Executive Director) * MADAM CHOON WAN JOO (Executive Director) * DR CHOONG gain YEW (Senior Independent Non-Executive Director * ENCIK FAZRIN AZWAR BIN MD NOR (Independent Non-Executive Director) * DATIN SHIRLEY YUE SHOU HOW (Independent Non-Executive Director) The board of Poh Kong Holdings Berhad is committed to instill a corporate culture of good corporate presidency which is practiced throughout the company and its subsidiary companies.The group acknowledges the importance of corporate governance in enhancing its business successfulness and corporate accountability with the absolute purpose of realizing long-term shareholders and sta keholders value. The group will continue to endeavor to comply with all the key principles of the Malaysia Code Corporate judicature in an effort to observe high standards of transparency, accountability and integrity. This is to sustain optimal governance with conscientious accountability for continuous effectiveness, cleverness and competitiveness of the group.