Take you to quickly get to know the big brother in the pawnbroking industry, EMCC
Evergreen Max Cash, founded in 2012, is a pawnshop group with 22 branches, mainly in central West Malaysia. The Group has three major businesses: pawnbroking, trading, and consulting and IT services
Pawning, as the name suggests, means that customers use valuable items as collateral in exchange for a short period of cash flow, and must also pay interest on a monthly basis. Trade, on the other hand, is when the customer is unable to repay interest, or directly defaults on the contract... The pawnshop has the right to trade the item through a third-party platform to protect its own interests and obtain a one-time profit from it. In addition, the Group also provides consulting and IT solutions to third party partners, including pawnshop establishment, employee training, operation support, etc., to earn sustainable profits through monthly fees
Since the business requires a large amount of cash reserves, after listing, the group will use 46.7% of the capital raised, or 30m, for working capital, and another 31% for opening 5 new pawnshop branches. As of 2022, Emcc's pawnshops account for 3.3% of the Malaysian market. With the progress of traditional industries, pawnbroking processes are becoming more and more simplified, and customers have more financing options, so the industry still has a lot of room to grow. Like PPJack, another recently listed peer, has delivered excellent results for many consecutive quarters, followed by a rise of at least 300% in stock prices. Its unique business has made investors willing to give a higher valuation level
EMCC is no exception. It has risen nearly 80% since the listing, and it is expected that the market will continue to pay attention to this IPO until the next announcement of results
Pawning, as the name suggests, means that customers use valuable items as collateral in exchange for a short period of cash flow, and must also pay interest on a monthly basis. Trade, on the other hand, is when the customer is unable to repay interest, or directly defaults on the contract... The pawnshop has the right to trade the item through a third-party platform to protect its own interests and obtain a one-time profit from it. In addition, the Group also provides consulting and IT solutions to third party partners, including pawnshop establishment, employee training, operation support, etc., to earn sustainable profits through monthly fees
Since the business requires a large amount of cash reserves, after listing, the group will use 46.7% of the capital raised, or 30m, for working capital, and another 31% for opening 5 new pawnshop branches. As of 2022, Emcc's pawnshops account for 3.3% of the Malaysian market. With the progress of traditional industries, pawnbroking processes are becoming more and more simplified, and customers have more financing options, so the industry still has a lot of room to grow. Like PPJack, another recently listed peer, has delivered excellent results for many consecutive quarters, followed by a rise of at least 300% in stock prices. Its unique business has made investors willing to give a higher valuation level
EMCC is no exception. It has risen nearly 80% since the listing, and it is expected that the market will continue to pay attention to this IPO until the next announcement of results
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