Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130502000603/Article/index_html
Published: May 02, 2013
Habib Jewels expects about RM400 million in sales this year as demand for gold jewellery and diamonds is on the increase
“We expect about RM400 million in sales this year as demand for gold jewellery and diamonds is on the increase. We will concentrate on the local market for growth,” said managing director Datuk Meer Sadik Habib.
Last year, the company posted RM350 million in sales.
Meer Sadik said demand is picking up due to the precious metal trading at its lowest levels this year.
“The response from our customers has been quite encouraging ever since gold prices started dropping and they took the opportunity to boost their inventories,” he said.
On its overseas operations, he said contributions towards profit and turnover are expected to remain at last year’s level of 20 per cent. Its export markets include Indonesia, Singapore, Brunei, the United States and Europe.
Meer Sadik said Habib Jewels will continue to strengthen its presence in the domestic market by opening more outlets.
He said the company will open five new outlets outside the Klang Valley to expand its customer reach.
The cost to set up an outlet ranges from RM5 million to RM15 million, he said, adding that it depends on the size and location.
There are currently 30 Habib Jewels outlets nationwide.
On the outlook for gold this year, Meer Sadik said the company is positive that gold prices will strengthen in the long run due to strong demand.
“Although gold prices have dropped, people are still looking to gold as a precious metal that they can buy as an investment,” he said.
He expects the gold price to hit US$1,600 to US$1,800 (RM4,868 to RM5,476) an ounce by year-end.
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