Pappajack Bhd · MYX:PPJACK
Pappajack Bhd — Investor Presentation (May 2022)
17 slides from Pappajack Bhd's investor presentation, May 2022
Slide 1: Pappajack Berhad Corporate Presentation
PAPPAJACK BERHAD THE FIRST AND ONLY PAWNBROKING SERVICE PROVIDER LISTED IN MALAYSIA CORPORATE PRESENTATION May 2022
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: At a Glance
T A GLANC 2014 27 7 Opened 1st Local States of pawnbroking Pawnbroking Market outlet outlets Presence 2 91% 9% Income Sale of Unredeemed Pawnbroking Streams Gross Profit Mix (2021) or Bid Pledge Gross Profit Mix (2021) 76% 63% RM99m CAGR of Revenue CAGR of PAT Outstanding Pawn Loan 2018-2021 2018-20
Slide 4: Business & Strategies
Business & Strategies About Pappajack How Is The Pawnbroking Process Business Expansion Growth Strategies Competitive Strengths Financial Overview Key Takeaways 4
Slide 5: About Pappajack
About Pappajack A Non-bank Financial Institution Providing Pawnbroking Services Across Peninsular Malaysia 100% Pledge-backed Short-term Micro-financing Interest rate Gold & luxury watches Maximum 6 months Maximum RM10,000 1.30 – 2.00% with loan margin based per pawn ticket(2) per pawn ticket Monthl
Slide 6: How Is The Pawnbroking Process
How Is The Pawnbroking Process Receive pledge, Value pledge, Issue ticket and Assess pledge(2) Store pledge verify customer(1) offer loan(3) cash payment IF default OR OR Sale of unredeemed Re-pawn Redeem or bid pledge 1) Measures to prevent unlawful and suspicious dealings: (i) ensuring that pledge
Slide 7: Business Expansion
Business Expansion No. of Outlets By Regions and States 2018 2019 2020 1 1 3 5 Pulau Pinang 3 Total Total Total 7 2 8 17 25 15 Perak 7 13 1 Pahang Selangor 13 As of 1 Apr 2022 3 Kuala Lumpur 1 3 1 Negeri Sembilan Central 2 Johor Northern Total Southern 7 27 16 Eastern Pappajack Berhad 7
Slide 8: Growth Strategies
Growth Strategies In fast growing mode and ready to steer business further Average breakeven for new outlet is 8 outlets commenced in 2020 are expected ≈ 2 years to turn profit in 2022 Cash Capital + IPO Proceeds(1) Available Capital Operating (As of 31 December 2021) RM116m ≈ RM46m ≈ RM162m (+40%)
Slide 9: Competitive Strengths
Business & Strategies Competitive Strengths Serve Financially Unserved or Underserved Markets Offer Fully Collateralised Loans Provide Quick Access To Pledge-backed Short-term Micro-loans Skilled and Knowledgeable Outlet Personnel Experienced Key Management Team A Network of Strategically Located Pa
Slide 10: Competitive Strengths
Competitive Strengths Serve Financially Unserved or Underserved Markets • Complement conventional financial institutions which involve more stringent loan requirements on income levels and credit score ratings as well as lengthy application process 1 • Alternative financial solutions and temporary f
Slide 11: Competitive Strengths
Competitive Strengths Skilled and Knowledgeable Outlet Personnel • Prioritise development of necessary technical skills and knowledge as well as managerial skills to serve customers efficiently and build our team of outlet personnel 4 • Require new personnel to undergo our internal training programm
Slide 12: Financial Highlights
Business & Strategies Competitive Strengths Financial Highlights Healthy Earnings Track Solid Financial Strength Key Takeaways 12
Slide 13: Healthy Earnings Track
Healthy Earnings Track Revenue (RM m) GP (RM m) GP Margin (%) 54.1 30.0 50.0 39.5 44.9 40.0 31.0(1)(2) 25.0 26.5(2) 30.0 30.8 CAGR 20.0 13.8 14.4 20.0 10.0 CAGR 76% 54% 15.0 0.0 19.2 -10. 0 10.0 10.0 5.9 -20. 0 5.0 4.0 -30. 0 -40. 0 0.0 -50. 0 2018 2019 2020 2021 2018 2019 2020 2021 PBT (RM m) PBT M
Slide 14: Solid Financial Strength
Solid Financial Strength Outstanding Pawnloan including interest / Net Asset (RM m) Cash (RM m) Total Receivables (RM m) 98.8 99.3 108.8 115.6 50.2 64.7 54.9 26.6 11.6 15.7 16.6 5.9 2018 2019 2020 2021 2018 2019 2020 2021 ROE (%) ROA(%) Current Ratio (x) Gearing Ratio (x) 7.6 40.55 36.81 5.9 27.17 3
Slide 15: Key Takeaways
Business & Strategies Competitive Strengths Financial Overview Key Takeaways
Slide 16: Pawnbroking Prospects
Pawnbroking Prospects Revenue of licensed pawnbroking industry players Market share in Malaysia, 2020 In Malaysia (RM b) 2017 2018 2019 2020 Pappajack 1.11 2.88% 1.07 4.8% CAGR Others 1.01 97.12% 0.93 Pawnbrokers play a vital role in providing short-term micro-loans to individuals who may be financi
Slide 17: Thank You Pappajack Berhad
Thank You Pappajack Berhad For Investor Relations, please contact: Ashley Chew ashley@esente.com.my Go Sin Sin sinsin@esente.com.my