KUALA LUMPUR (May 13): Pawnshop operator Pappajack Bhd (KL:PPJACK) first-quarter net profit jumped 44.62% to a record of RM9.04 million driven by higher profit margins.

Net profit for the three months ended March 31, 2026 (1QFY2026) was up from RM6.25 million a year ago, as the company's gross profit margin expanded to 48.4%, from 37.5%, a bourse filing showed on Wednesday. Gross profit margins were up on both pawnbroking interest income and sales of unredeemed pledged items.

The group’s quarterly earnings of RM9.04 million are the highest since its listing on Bursa Malaysia on April 1, 2022. Earnings per share stood at 1.18 sen in 1QFY2026, versus 0.81 sen in 1QFY2025.

Quarterly revenue increased by 10.21% to a record RM37.31 million from RM33.85 million a year ago.

The board declared a first interim single-tier dividend of half a sen per ordinary share, payable on July 31.

Looking ahead, Pappajack said 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.

The group currently operates a network of 61 outlets nationwide across Peninsular Malaysia, comprising 53 conventional pawnshops and 8 Ar-Rahnu outlets, and said it remains cautiously optimistic about its business prospects.

According to AskEdge data, the company is currently trading at the highest price-earnings ratio (PER) among its peers at 24.9 times, while its price-to-net asset value (PNAV) ratio of 2.5 times is also the highest in the sector. In contrast, Well Chip Group Bhd (KL:WELLCHIP) has a PER ratio of 9.8 times and a PNAV of 1.7 times.

At Wednesday's closing bell, Pappajack’s share price was unchanged at 91 sen, giving the group a market capitalisation of RM699.1 million.