PCCS enters the lucrative used car financing business
- PCCS is diversifying into higher-margin businesses. The venture into used car financing was announced yesterday and this follows the Group’s plan to penetrate into the Asia-Pacific medical device market, which was announced in Dec 2020.
- On April 12, it entered into a JV with Justin See Kok Wah, a veteran in the used car selling biz.
- PCCS will hold a 80% stake in the new JV and will invest RM4mil.
- The Group expects positive contribution from the business within a year.
- Used car financing biz is very lucrative, take ELK-Desa Resources Bhd for an example.
- The company’s hire purchase business for small value used cars has been doing well.
- ELK-Desa has delivered double-digit profit margin in the past 3 years.
qr sure bad.. + lockdown .. i believe in this counter but smart money didnt interested in this company and director keep esos when price hike..they didnt support the price
KUALA LUMPUR: PCCS Group Bhd’s net profit fell to RM5.91mil in the fourth quarter ended March 31 against RM9.13mil in the same period a year ago.
While its net profit was lower, this was a turnaround from the loss of RM2.07mil it recorded in the preceding third quarter ended Dec 31, 2020 Its revenue rose 9.68% to RM103.6mil in the fourth quarter ended March 31 from RM94.4mil a year ago.
For the full financial year ended March 31, PCCS posted a net profit of RM3.1mil on revenue of RM377.5mil.
In a statement, PCCS Group managing director David Chan said that the commendable fourth quarter results was because it acted fast and seized opportunities in the midst of Covid-19.
“PCCS actively arranged vaccination for all of its employees in China and Cambodia, with currently more than 70% of these employees having been vaccinated.
“This has safeguarded the company from a sudden closure of its plant in the future,” he said.
Looking ahead, Chan said that the pandemic would eventually pass, and the trade pattern of textile and clothing would gradually return to pre-pandemic levels.
“Barring unforeseen circumstances, we are confident of delivering satisfying results for our bread and butter segments.
“We are also confident in our new segments, the hire purchase and medical devices venture. We are looking forward to seeing some new contributions, particularly from the hire purchase business in the coming year.
“We look forward to delivering a better FY22 for our shareholders,” Chan said.
Mr. Chan Chow Tek & others boseses buying on 17/18 la......tq bosses ya, keep buying ler ...go go PCCS, profit Q must celebrate good effort, goreng jagan tak goreng ......hehehe............
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
gubatianxia
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Posted by gubatianxia > 2021-03-24 11:42 | Report Abuse
don’t miss this hidden gem.
grab it before too late.