KUALA LUMPUR (Aug 10): Well Chip Group Bhd (KL:WELLCHIP) reported a nearly 15% increase in net profit for its second quarter ended June 30, 2026 (2QFY2026), driven by stronger performance from its pawnbroking business.

Net profit rose to RM23.93 million from RM20.30 million a year earlier, while revenue increased 8.7% to RM71.61 million from RM65.89 million. 

Pawnbroking revenue jumped 44.8% to RM41.93 million, supported by higher pawn loans. However, revenue from jewellery retail and trading fell 19.6% to RM29.69 million, mainly due to lower scrap gold sales.

No dividend was declared for the quarter.

Executive director and chief executive officer Ng Hooi Lang in a statement said the stronger performance reflected continued demand for short-term financing, supported by the group’s business model and customer service.

Well Chip plans to expand its network from 27 to 39 pawn shops, with 12 new outlets planned in Melaka and Johor. Six outlets received conditional approval from the Housing and Local Government Ministry in December 2025 and will be funded using RM23.6 million of remaining initial public offering proceeds, while the other six, approved in May 2026, will be funded through a proposed rights issue.

Under the rights issue announced on June 5, 2026, shareholders will be offered up to 120 million new shares at RM1 each, on a one-for-five basis, to raise up to RM120 million for the second batch of pawn shops and working capital.

For the six-month period, net profit grew 36% to RM52 million, from RM38 million a year earlier. Revenue for the period rose to RM147.66 million from 125.85 million a year ago. Gross profit margin for the six-month period improved to 63.3% from 55.5% the year before.

Well Chip shares fell 1.9% to close at RM1.05 on Monday, giving the company a market capitalisation of about RM630 million.