Maxi-Cash

Maxi-Cash: Marred by falling gold prices and deteriorating business environment Maxi-Cash 4Q13 net profit crumbled 74% y/y to $0.3m on revenue slip of 3% to $28m, from lower trading activities in pre-owned jewellery and watches segment, partially mitigated by better sales from its pawnbroking and retail business. The lower revenue was also marred by lower gold prices, averaging below US$1,200/oz in Dec 2013. The bottom line was impacted by higher rental costs for new pawnshops and retail outlets. Maxi-Cash's strategy going forward would be to further capitalize on its largest network and highest pledge book value in Singapore, by opening more new shops over the next six months. Group declared final dividend of 0.25¢/share, down from 0.68¢ last year. Separately, group announced a bonus issue of 93.8m new shares on the basis of 1-for-5. At $0.32, Maxi-Cash trades at a hefty 65x trailing P/E