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Dear all,

Aspial Lifestyle Limited (Non-Rated): Expanding to Malaysia
 

Growth. Maxion currently holds 3 pawnshops in Johor Bahru in Malaysia. The management guided that they are exploring to expand their presence in the Malaysia market via new stores opening or M&A as there are potential single mom and pop stores for sale. We believe that this will drive the next phase of growth for Aspial Lifestyle pawnbroking business whilst injecting 5 stores into Maxion– rebranding all to Dr. Pajak

Public Education on Pawn Shop in Malaysia. During the visit, the management explains that moving forward, they are looking to create awareness that pawnshops are not only for short-term microfinancing but also as an alternative safe deposit locker.

Compared to the safe deposit, be it at home or in an FI, the vault in the pawnshop is well-designed and each item stored is well-recorded. With this, Dr. Pajak’s model doesn’t only caters to the B40 segment in the market but also those who not need the short-term credit financing.

First “Drive-Thru” Pawnshop in Malaysia. We visited the 3 outlets in Johor Bahru recently and witnessed the whole seamless experience of customers driving thru the outlets. As for security reasons, this drive-thru model has gained confidence and Dr. Pajak offers various loyalty programs which creates the stickiness amongst its clients.

Aspial Lifestyle is currently trading at 10.4x P/E and dividend yield of 6.8%


 
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