https://we.tl/t-LZDCjB1qK4

• Projecting a 3-year earnings CAGR of c.26.6% for Pappajack, mainly driven by the expansion of pawnbroking outlets (+20%) and growing capital (+40%)

• With a total capital of >RM150m (including IPO proceeds) available for loan, interest income could potentially reach RM27m, assuming an average interest rate of 18% pa

• While we bake in higher operating and staff costs in relation to outlet expansion, operating leverage could cushion net margin once the newer outlets gain traction and mature

• At an implied 12x P/E, its 3-year earnings CAGR of 26.6% triumphs the industry average, supported by outlet expansion, growing cash capital, and newly found listing status