PCCS Group Anticipates Revenue Generation From A New Hire Purchase Venture In FY22

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PCCS Group Bhd, a clothing firm, is launching its hire purchase business this month with an RM5 million loan book and anticipates that this division would contribute to the group’s earnings in the current financial year ending March 31, 2022. (FY22).

According to a statement issued Tuesday, group managing director David Chan Wee Kiang is confident that Southern Auto Capital Sdn Bhd — the umbrella company for the company’s hire purchase business — will begin contributing revenue to the group once Melaka enters Phase 2 of the National Recovery Plan.

PCCS operates a hire purchase business in Melaka and Johor.

“The epidemic of Covid-19 has resulted in a spike in old automobile sales, as consumers become more price sensitive during the recession. Indeed, there is an unmet demand in the used car industry. We hope to begin disbursing loans of RM1 million per month this month “Chan stated.

Unless more restrictions are imposed and the economy returns to normal, the group intends to more than treble the size of its hire purchase loan book in FY23.

PCCS formed Southern Auto Capital in April through a joint venture (JV) with an individual, Justin See Kok Wah. The JV’s objective was to build and operate a business financing and insuring secondhand vehicles in Melaka and Johor. PCCS invested RM4 million for an 80 percent ownership in the JV, while See invested RM1 million for the remaining 20%.

Additionally, Chan stated that PCCS’ production facility for medical devices is currently under construction. “We are currently in the process of registering medical devices with authorities in countries such as Vietnam, Indonesia, Thailand, Malaysia, and Singapore. We are hopeful that we will be able to finish registration in at least one of those nations before the end of FY22 “he continued.

PCCS shares were down one sen or 2% to 49 sen at 3.59pm, giving the company a market value of RM103.82 million.

Published by Zack Baharum

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