KUALA LUMPUR (Nov 24): Pawnshop operator Pappajack Bhd (KL:PPJACK) posted record third-quarter earnings, with net profit up 23.6% year-on-year (y-o-y) due to higher gross margins.

Net profit for the three months ended Sept 30, 2025 (3QFY2025) climbed to RM8.06 million, from RM6.52 million a year ago, as gross profit margin expanded to 43.5%, from 39.7%, it said in a filing with the bourse on Monday.

The group’s quarterly earnings of RM8.06 million are its highest since listing on Bursa Malaysia on April 1, 2022.

In a statement, its group chief executive officer Jack Lim Boon Hua said the group’s higher gross profit margin for the quarter underscores improved operational efficiency and a favourable business mix.

“Both our business segments performed well, with the pawnbroking segment maintaining its consistently high margins while the unredeemed pledges segment contributed steady returns,” Lim added.

Earnings per share stood at 1.05 sen in 3QFY2025, versus 0.85 sen in 3QFY2024.

Quarterly revenue increased by 12.13% y-o-y to RM32.65 million, from RM29.12 million.

The board declared a third interim single-tier dividend of 0.5 sen per share, payable on Dec 23. This brings year-to-date dividends to 1.5 sen per share.

For the nine months (9MFY2025), Pappajack’s net profit rose 19.91% to RM21.35 million, from RM17.81 million in 9MFY2024, as revenue improved by 11.61% to RM99.31 million, from RM88.98 million in the previous year.

The group, which operates a total of 56 outlets across Peninsular Malaysia, said it remains cautiously optimistic about its business prospects.

“The pawnbroking industry continues to serve as an essential alternative financing channel, particularly for individuals and small businesses requiring quick and accessible pledged-financing facilities,” it noted.

The company plans to strengthen its pawnbroking business through better branch management and customer service, maintain cost control, invest in technology to boost efficiency, follow prudent lending and collateral practices, and sustain dividends while keeping enough capital for growth.

At Monday's closing bell, Pappajack’s share price was one sen or 1.11% higher at 91 sen, giving the group a market capitalisation of RM699 million.