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***Disclaimer***Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision.
Open to apply: 26 June 2024
Close to apply: 10 July 2024
Balloting: 12 July 2024
Listing date: 23 July 2024
Share Capital
Market cap: RM690mil
Total Shares: 600 mil shares
Industry CARG
Historical Size (Revenue) for Pawnbroking Industry in Malaysia 2020-2023: 19.3%
Growth Forecast for the Pawnbroking Industry in M’sia, 2024-2028: 11.4%
Industry competitors comparison (net profit%)
1. Well Chip: 17.3% (PE19.54)
2. EMCC: 16.2% (PE29.53)
3. PPjack: 18.3% (PE35.87)
Business (FYE 2023)
Pawnbroking services and business of retail and trading of jewellery and gold.
Revenue segment
1. Pawnbroking services
- Interest income: 35.8%
- Administrative fees: 0.1%
2. Retail and trading of jewellery and gold
- Retail sales of jewellery and gold : 10.6%
- Sales of scrap gold: 53.5%
Fundamental
1.Market: Main Market
2.Price: RM1.15
3.Forecast P/E: 19.54
4.ROE(Pro Forma III): 9.6%
5.ROE: 17.37% (FYE2023), 14.64%(FYE2022), 15.80%(FYE2021), 25.51%(FYE2020)
6.Net asset: 0.61
7.Total debt to current asset: 0.46 (Debt: 292.449mil, Non-Current Asset: 30.494mil, Current asset: 629.632mil)
8.Dividend policy: 35% PAT dividend policy.
9. Shariah status: -
Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FYE 31Dec): RM203.675 mil (Eps: 0.059), PAT: 17.3%
2022 (FYE 31Dec): RM158.125 mil (Eps: 0.042), PAT: 15.9%
2021 (FYE 31Dec): RM101.881 mil (Eps: 0.040),PAT: 23.3%
2020 (FYE 31Dec): RM121.840 mil (Eps: 0.056),PAT: 27.6%
Major customer (FYE 2023)
(Retail and trading of jewellery and gold segment)
1. Pavilion Wee Bullion Sdn. Bhd: 28.3%
2. TTT Bullion (M) Sdn. Bhd: 21.7%
3. Go Capital Growth Sdn. Bhd: 3.4%
***total 53.4%
Major Sharesholders
1. Yeah Hiang Nam: 65.5% (indirect)
2. Tan Hong Yee: 65.5% (indirect)
3. Ng Hooi Lang : 0.9% (direct)
4. Tang Soo Yen : 0.8% (direct)
5. VYN Holdings: 50.7% (direct)
6. ValueMax Group Limited: 65.5% (indirect)
7. Yeah Holdings: 65.5% (indirect)
Directors & Key Management Remuneration for FYE2024
(from Revenue & other income 2023)
Total director remuneration: RM1.1235 mil
key management remuneration: RM0.35 mil – RM0.40 mil
total (max): RM1.5235 mil or 1.97%
Use of funds (MYR)
1. Cash capital for our existing 23 pawnshops: 124.3mil, 72%
2. Expansion of pawnshops: 40mil, 23.2%
3. Estimated listing expenses: 8.2 mil, 4.8%
Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with high grow return opportunities.
*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.