Oi Wah Pawnshop's profit drops 35.3% amid revenue decline

Oi Wah Pawnshop Credit Holdings (HKEX:1319) announced its annual results for the year ended 28 February 2025, revealing a 35.3% year-over-year decrease in profit attributable to shareholders, falling to HK$55.9 million from HK$86.4 million the previous year. Revenue also declined by 8.4% to HK$164.3 million, primarily due to decreased interest income from its mortgage loan business. The company's net profit margin was 34.0%, down from 48.2% in the prior year. Basic earnings per share decreased to 2.9 HK cents from 4.5 HK cents. Despite the profit downturn, the company proposed a final dividend of 0.81 HK cents per share. Gross loan receivables principal decreased by 8.3% to HK$870.6 million. The company remains optimistic about future prospects, focusing on a cautious underwriting stance and expansion opportunities to maximize investor returns.