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Look on their report, if not wrong , current they have pawn stock is around 120m+ and cash is around 40m+, total assets is around 160m+ , we dun talk they have any liabilities, but currently market value is around 320m , mean almost double its assets .
For my know , pawn shop is need people pawn and earn interest , this quarter only earn RM 1 M , assume one year RM 4-5 m , how long it need over 320m market cap .
- Dun forget , currently u could see the pawn shop is everywhere , big competitor and competition .
- if need expand , renovation cost , license fee , when start almost need wait 1 to 2 year people come to pawn and have stock in just can earn interest and get cover operation cost , this 1 to 2 year operation cost like few staff salary , rental , insurance fee and etc. .
- And most of the pawn shop stock is gold and branded watch , dun forget the gold price is drop and branded watch is big drop recently , in this year , maybe their stock in is over the price . paper price is beautiful but the real price maybe is lower then they borrow out the money . (people will think if gold price up then earn , dun forget the customer see gold price up , they mostly will take back and sell ) .
Lastly , assumes this company need reach 300m stock (like current market value) , but now cash only around 40m , the gap 120m+ + 40m+ to 300+m = around 140m ( may know where to get the money ) ? Borrow ? private placement ? or any other cara ?
For my opinion only , I not call buy or call sell , just depend on your thinking to invest .
Outside the pawn lesen per shop kopi is 150k sudah boleh get . YOU mean the 4m is paid up capital , normally majority company will use the paid up capital 4m use for business use , mean the money is inside their stock or business , if not , 25 unit shop x 4m paid up capital , they cash on the report must have at least 100million , but we saw that only 40m cash , mean they have use the paid up capital inside the business already .
