Homepage
PR Newswire
27-05-2026, 09:35 AM
(25-05-2026, 09:19 AM)Behappyalways Wrote: Personally I feel that Malaysian pawnshops have more room of growth. The listed pawnshops in Singapore have stakes thru their subsidiaries and associates
Well Chip 1Q2026
https://www.bursamalaysia.com/bm/market_...id=3668850
https://disclosure.bursamalaysia.com/Fil...TTACHMENTS
(24-11-2025, 09:29 PM)Behappyalways Wrote: The 3 pawnshops listed in Singapore does not report interim results.
Valuemax's associate Wellchip just posted 3q2025 result. The 3 pawnshops should do well especially present gold price is much higher than in1st half
https://www.bursamalaysia.com/bm/market_...id=3610858
(02-02-2026, 07:42 PM)Behappyalways Wrote: Profit Guidance
https://links.sgx.com/1.0.0/corporate-an...fdf5c518c4
In Spore, pawn brokers can only charge max 1.5% interest/month while their Msian counterparts can charge max 2% interest/month. The simple sum of this difference over a year is 0.5*12~6%. Since Msia's funding costs are only ~200-300bp higher, it is reasonable to assume that Msian pawn brokers have structurally built-in higher NIM than their Spore counterparts.
Some time ago, I looked at 2 "finance firms" in Msia that is similar in charging such high interest rates. (a) Aeon Credit Service (ACS) and (b) RCE Capital Bhd...Both charged ~14.5-15% interest rate for their loans and with interest cost in the mid single digits, they "enjoy" a NIM in the 9-11% sorts.
ACS dispenses loan to folks who can't get one from banks, while RCE Capital has even a better model - dispensing loans (mainly housing) to civil servants and collaborates with authorized collection channels to automatically deduct repayment installments from civil servants' salaries. When times were good with economies humming, both finance firms monetized their high NIMs as marginal borrowers kept up their monthly instalments. But when covid-19 affected these marginal borrowers the most and drove many to bankruptcy, NPLs shot up and their previous high NIM came back to roost. In addition, Msian Anti Corruption (MACC) uncovered a syndicate that targeted civil servants with promise of easy loan approvals ("Ops Sky") and RCE Capital Bhd was found to be impacted.
Now back to these Msian pawn brokers. Their business model is dispensing small loan amounts using a hard asset as collateral (gold jewellery etc) for short periods of time (6 months). While ACS and RCE Capital haven't been enjoying the best of times in the past few years but in this same period, pawn brokers are expanding and doing brisk business. In addition, rise in gold prices is a tailwind to their business (inducing folks to borrow) and more importantly, act as a protection cover against NPL. I suppose the main risk to their business is some sort of fraud (at branch level in terms of collecting collateral) and sudden big drops in gold prices. But loan quantum, large dispersion of outlets and the short duration of loans would largely contain the effects of these risks.
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
