Update shared on14 Jul 2025
Poh Kong Holdings Bhd – Risks from Discretionary Spending Shift
As a player in consumer discretionary retail, Poh Kong is directly exposed to changes in household spending behavior. If new taxes (e.g., sales tax expansion, capital gains tax, or SST hikes) reduce disposable income or increase the cost of luxury goods, this could suppress demand for jewelry, especially higher-margin items like diamonds and branded pieces. Even though gold can act as a hedge or investment store in uncertain times, the retail jewelry segment (especially wedding or seasonal demand) may weaken. Moreover, price-sensitive lower-income consumers may delay or reduce purchases, affecting same-store sales growth.
Key Risks for Poh Kong:
• Drop in retail footfall and discretionary jewelry purchases.
• Pressure on profit margins if the company absorbs tax-driven cost increases to remain competitive.
• Slower inventory turnover, especially for higher-value items.
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