MoneyMax

MoneyMax: 4Q13 net profit slumped 33% y/y to $0.9m, despite 15% growth in revenue to $22.1m, due to lower gross profit margin of 29.3%(-2.1ppts), higher employee benefits expense (+51%) from increased headcount on the addition of new outlets and one-off IPO expense. The topline was boosted by higher sales of pre-owned jewellery and watches from the refurbished retail outlets. Group intends to add more stores to its current network of 31 outlets to achieve higher economies of scale, and remains on the lookout for alliances or opportunities with potential partners to leverage on its strengths and track record. Management proposed maiden final dividend of 0.3¢/share.