KUALA LUMPUR: Evergreen Max Cash Capital Bhd (EMCC), an established pawnbroking service provider, retailer and trader of gold and luxury products, posted a 47.4% increase in net profit to RM23.3 million for the financial year ended December 31, 2024 (FY24) compared to RM15.8 million in FY23.
This growth was driven by a 25.4% rise in revenue to RM122.3 million in FY24, up from RM97.5 million in FY23.
The strong financial performance was primarily due to higher contributions from the pawnbroking, gold, and luxury products retail and trading segments.
Revenue from the pawnbroking segment grew by RM9.5 million (28.0%) on the back EMCC’s strategic expansion of the Pajaking pawnshop network, growing from 22 outlets as of December 31, 2023, to 28 outlets as of December 31, 2024.
Meanwhile, the gold and luxury products retail and trading segment reported revenue growth of 15.1%, largely driven by higher transaction volumes of unredeemed pledged gold items from the pawnbroking business.
Favourable gold price movements further enhanced profit margins, which rose to US$2,609 per ounce in Q4 FY24 compared to US$2,064 per ounce in the third quarter (Q3) of FY24.
Executive director and group managing director Datuk Low Kok Chuan said the company anticipate sustained and growing demand for pawn loans, particularly among Malaysia’s unbanked and underbanked communities.
“To capitalise on these opportunities, we will continue to actively expand our pawnshop network, both organically through the establishment of new outlets in strategic locations and through strategic acquisitions,“ he said.
As of December 31, 2024, the group operates 28 Pajaking pawnshops offering conventional pawnbroking and 42 Islamic pawnshop outlets providing pawnbroking under the Tawarruq.
“Looking ahead, we remain committed to distinguishing ourselves in the market through our service offerings, marketing strategies, and dedication to quality.
“Our priority is strengthening our competitive position, broadening our reach, and enhancing operational efficiencies.
“Through these initiatives, we aim to sustain growth and deliver long-term value for our shareholders,“ Low said.
In Q4 FY24, the group’s revenue surged by 79.5%, reaching RM40.8 million, vis-àvis RM22.7 million in the same quarter last year.
Net profit, however, was lower at RM4.3 million, down from RM5.6 million in Q4 FY23. This was mainly due to an unrealised foreign exchange loss of RM1.8 million arising from the group’s USD-denominated borrowings.
This also led to higher tax expenses, elevating the quarter’s effective tax rate to 43.5% due to its non-deductible nature.
Profit before tax (PBT) in Q4 FY24 was RM7.6 million.
Excluding the unrealised foreign exchange loss, the group’s PBT would have increased by RM1.9 million (or 25.0%) to RM9.5 million in Q4 FY24 from RM7.6 million in Q4 FY23.
