KUALA LUMPUR: Evergreen Max Cash Capital Bhd
(EMCC) has acquired two additional pawnshops, which serve to expand its network of "pajaking" pawnshops.
In a statement, the pawnbroking service provider and retailer of gold and luxury products said it acquired the two pawnshops for RM5.5mil in strategic locations in Sri Petaling in Kuala Lumpur and Shah Alam.
EMCC, which was listed on the ACE Market of Bursa Malaysia on Sept 26, 2023, has set out to increase its network by adding five more pawnshops by end-2024. Including the two recent acquisitions, the group now has a network of 24 pawnshops.
"By acquiring established and profitable pawnshops, this strategy aligns with our growth objectives and grants us the advantage of integrating fully operational pawnshops into our network.
"In addition to being earnings accretive, the acquisitions would also eliminate the time-consuming process of building a new customer base, as would be the case when opening new pawnshops," said executive director and group managing director Datuk Low Kok Chuan.
The group reported revenue of RM74.8mil in the nine months ended Sept 30, 2023, up 63.8% from the year-ago period, while profit after tax climbed 35.7% to RM10.2mil.
Low said the group is confident of delivering a stronger financial performance in the financial year ended Dec 31, 2024, with the contributions from the two new pawnshops.
