Maxi-Cash

Maxi-Cash: Weaker set of 3Q12 results, partly due to a high base in 3Q11. Rev at $25.1m, +11% yoy and net profit at $1.4m, -20% yoy. Result brings 9M12 rev to $71.5m, +14% yoy and net profit to $3.1m, +53% yoy. Drop in Rev was dragged by lower rev from the retail and trading of pre-owned jewellery and watches. The pawnbroking business continued to register higher rev due mainly to interest income from higher pledge book. The retail and trading of pre-owned jewellery and watches recorded lower rev due to the record rev achieved in 3Q11. The surge in gold prices to an all-time high in Aug and Sept 2011 resulted in higher business vol for the retail and trading of pre-owned jewellery and watches business in 3Q 2011. Going forward, grp note that it has opened 3 new pawnshops and retail outlets at 3 new locations namely, Tampines MRT, Pasir Ris MRT and Redhill MRT stations in Oct12.The Grp expects to open additional pawnshops and retail outlets in a few new locations in the next 12mths. Expects to see continued growth in the pledge book value of non-kilo-bar-gold loans on a same-store basis and at its newly-opened stores. Barring unforeseen circumstances, the Group expects to achieve better profit in FY12 vs FY11.