EVERGREEN MAX CASH CAPITAL BERHAD

Open to apply: 29 August 2023
Close to apply: 12 September 2023
Balloting: 15 September 2023
Listing date: 26 September 2023

Share Capital
Market cap: RM267.5766 mil
Total Shares: 1.1149 bil shares

Industry CARG
Pawnbroking industry size in Malaysia CAGR (2017-2022): 5.2%
Industry competitors comparison (net profit%)
1. EMCC group: 30.56% (PE13.3)
2. PPjack: 14.46% (PE49)
3. Others (Sdn Bhd): -5.8% to 56.36%

Business (FYE 2023)
1. Pawnbroking services (Revenue: 30.3%)
- Monthly interest based on pawn loan.
- Administrative fee
2. Gold and luxury product retail and trading (Revenue: 69.2%)
- One-off sales.
3. Pawnbroking consultancy and IT solutions. (Revenue: 0.5%)
- Monthly consultation fee.
- Monthly IT solutions fee. 

Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.Forecast P/E: 13.3 (FYE2022, EPS RM0.018)
4.ROE(FPE2023):  11.12%
5.ROE: 5.1%(FPE2022), 11.06%(FYE2021), 8.3%(FYE2020),1.17%(FYE2019)
6.Net asset: RM0.17
7.Total debt to current asset: 0.394  (Debt: 69.246mil, Non-Current Asset: 26.428mil, Current asset: 175.866mil)
8.Dividend policy: 20% PAT dividend policy.
9. Shariah status: -

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2023 (FPE 30 Apr, 4mth): RM35.956 (Eps: 0.004), PAT: 13.7%
2022 (FYE 31Dec): RM67.173 mil (Eps: 0.0180), PAT: 29.8%
2021 (FYE 31Dec): RM60.903 mil (Eps: 0.0110),PAT: 19.6%
2020 (FYE 31Dec): RM24.426 mil (Eps: 0.0060),PAT: 25.9%
2019 (FYE 31Dec): RM14.802 mil (Eps: 0.0010),PAT: 5.4%

Major customer (2023)
1. Nexigold Jewellery Sdn Bhd: 22.6%
2. Gold Bullion Precious Metal Sdn Bhd: 33.3%
***total 55.9%

Major Sharesholders
1. Tirai Anggerik: 55.6% (direct)
2. Dato’ Low Kok Chuan : 55.6% (Indirect)
3. Datin Tea Guat Ngo : 55.6% (Indirect)
4. Low Kok Hu: 55.6% (indirect)
5. Tee Kian Heng: 3.3% (indirect)

Directors & Key Management Remuneration for FYE2023
(from Revenue & other income 2022)
Total director remuneration: RM0.969 mil
key management remuneration: RM0.50 mil – RM0.65 mil
total (max): RM1.619 mil or 6.91%

Use of funds
1. Expansion of pawnshops: 31.1%
2. Cash capital for our pawnbroking business: 46.7%
3. Repayment of bank borrowings: 6.2%
4. Working capital: 8%
5. Estimated listing expenses: 7.2%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall is high risk investment, and also come with high grow return opportunities. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.