EMCC aims to have 80 pawnbroking outlets by next year

KUALA LUMPUR (Dec 17): Evergreen Max Cash Capital Bhd (KL:EMCC) said it aims to grow its pawnbroking network to 80 outlets by 2025, buoyed by rising demand for Islamic pawnbroking services.

The ACE Market-listed company is expecting to grow its Islamic pawnbroking business “Ar Rahnu Cahaya” to 50 outlets by the first quarter of 2025, from 39 currently.

Meanwhile, its conventional pawnbroking network “Pajaking” has expanded to 28 outlets this year, from 22 outlets at the end of last year.

“EMCC is well-positioned to serve customers seeking shariah-compliant financial solutions. With our strong understanding of the market, we are able to strategically identify and establish outlets in prime locations,” said EMCC executive director and group managing director Datuk Low Kok Chuan in a statement.

In its private placement that was announced in October, EMCC said it plans to raise “approximately RM30 million” to grow its pawnshop network, and raise cash to support higher deployment of pawn loans to meet rising customer needs.

EMCC has yet to finalise the price of the private placement, which seeks to issue up to 10% of its share capital or 111.49 million shares at an illustrative price of 32 sen per share. The counter last traded at 36 sen, down 1.5 sen or 4% from the previous day.

EMCC’s outlets are located across Kuala Lumpur, Selangor, Negeri Sembilan, Pahang, Perak, and Terengganu.

In the nine months ended Sept 30, 2024 (9MFY2024), EMCC’s net profit grew 86.38% to RM18.99 million or 1.7 sen per share from RM10.19 million or 1.2 sen per share, as revenue grew 8.95% to RM81.49 million, from RM74.8 million.

Since its listing in September 2023, the counter has risen by 50% or 12 sen from its initial public offering price of 24 sen. At 36 sen, the counter is trading at historical price-to-earnings ratio of 16.4 times.