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 its launch, and it is expected...

Are there any horse stock investors?

The new governor (Chris Minns), located in New South Wales, Australia, said in an interview a few days ago that the government of the former DPRK had excessively relaxed the state's current construction of the Sydney Metro West Line project in Australia. Cost estimates have soared from the initial 16 billion Australian dollars to 25 billion Australian dollars, which has already exceeded the originally allocated budget, so it is intended to put the plan on hold, and it is not ruled out that it will be cancelled
However, the governor publicly stated two days later that it is currently only in the discussion stage, including how to reduce the budget, shorten or replace routes, and expand development value, etc. At the same time, he assured reporters that “if this plan is cancelled, you can cut off my head”
According to the contract, Gammuda was the general contractor for the project and received a contract worth 2.16 billion Australian dollars on March 1, 2022. Construction in April of the same year was also the group's most valuable hand order. As of the latest quarterly report, the Group has completed 26% of its progress. If it is cancelled, then the value of losses will exceed 1.5 billion dollars, which is 4.53 billion in Malaysian dollars
As a result, Gamuda has been somewhat shaken in the past few days since the news was announced. Today, it even fell below a new low in a month, and once pulled back close to 7.5%. However, to me, investors seem to have overdigested this message. In particular, the governor has stated that he will not rashly cancel all projects, urging the public to reassure the public
Coupled with the imminent opening of the MRT3 tender, the high-speed rail agency reconvening the screening process for the Longxin High Speed Rail, and the imminent arrival of the 2024 budget, I think Gamuda is still...

As a representative of a well-known blue-chip company, Hapseng has 6 major businesses, namely palm oil, industry, credit, automobiles, trade, and construction materials. The most famous of these is having Sabah's largest sustainable palm oil business, which has been the Masaidi sales champion for many years, and a 10-year upward cycle
From 2011 to 2020, Hapseng's stock price rose from less than RM1 to RM10, an increase of up to 1000%. This is an annual increase of 100% on an even basis. Until the outbreak of the epidemic, stock prices seemed to have shown great resistance. The past two quarters handed over disrespectful performance due to falling CPO prices, rising raw material prices, and transportation costs
Furthermore, the announcement by Hapseng of the divestment of the credit business in early March and plans to use it to repay loans and operating costs rather than as a special dividend also disappointed investors. Coupled with the impending change in the auto agency model, there seem to be more uncertainties about the outlook, so that the stock price quickly fell below a 7-year low, even lower than the total value of net assets per share
As mentioned in the previous video, once the essence of the business changes, retail investors must take extra care rather than rush to the bottom. Happeng, for example, has sold out the most stable profitable business. However, the change in the Macédi agency model will also affect future profitability. Coupled with the continued slump in CPO prices and the beginning of weakening consumer demand, not...