Wow impressive Q2 results released today which see improved revenue, net profit and net profit margin. 2H 2024 revnuee and net profit stands at RM 118 mil and 26.2 mil respectively with net profit margin improved to 22% this quarter as compared to 15% in FY 2023.

Annualised EPS = 8.8 sen.
PE ratio =19.5x.

Assume PE ratio of 30x (Ppjack and EMCC 36 and 27x), the FV for Well Chip is 30 x 8.8 =RM 2.64

Is Well Chip’s lowest valuation among the 3 listed pawnshop group justifiable?
Well Chip traded at TTM PE 21x, while PPJACK (the first listed pawnshop group) and EMCC are traded at TTM PE 36x and 27x respectively.
Given that Well Chips is the largest pawnshop group by profit and market cap, could a higher valuation, say PE of 36x (Rm3.0) or 27x (Rm2.5) justifiable?