KUALA LUMPUR: PCCS Group Bhd, which is starting its hire purchase business this month with a RM5mil loan book, expects this division to start contributing in the current financial year ending March 31, 2022.

       Group managing director David Chan Wee Kiang is confident that Southern Auto Capital Sdn Bhd, the group’s hire purchase business would start contributing revenue to the group, now that Melaka has entered Phase Two of the National Recovery Plan.

       Once Johor enters Phase Two, this pace of growth will be quickened.

       PCCS’ hire purchase business is based in Melaka and Johor.

       “There is in fact a pent up demand in the used car market. We are hoping to give out loans of RM1 million every month starting this month,” Chan said in a statement.

       Across Malaysia, there is now a greater inventory of used vehicles online.

       Dealers are accelerating digital efforts as they can see that the demand is there.

       “Barring any further lockdowns and assuming the economy returns to normal, we are aiming to more than double the hire purchase loan book size in the next financial year,” Chan said.

       To recap, PCCS entered into a joint venture with Justin See Kok Wah to form Southern Auto Capital Sdn Bhd on April 19, 2021.

       The purpose of this joint venture was to establish and operate used vehicles financing and insurance business in Melaka and Johor.

       PCCS invested RM4mil for an 80% stake in the joint venture, while See held the remaining 20% with a capital of RM1mil. Hence, Southern Auto Capital is the wholly-owned subsidiary of PCCS.

       Meanwhile, PCCS posted a 21.7% jump in net profit to RM1.97mil in the first quarter ended June 30 on the back of a 9.22% increase in revenue to RM114.5mil.

       The company remains financially solid with cash of RM52.87mil as of the period.

       PCCS declared an interim dividend of 1 sen for its financial year ending March 31, 2022. This dividend goes ex on Oct 5, while payment date is on Nov 1.