Oi Wah FY2026 Net Profit Soars 47.8% to HK$82.6 Million, Proposes Final Dividend of HK$1.15 per Share

HONG KONG SAR – Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: 1319.HK) has reported significant financial growth for the fiscal year ending February 28, 2026 (FY2026). The Group’s profit attributable to shareholders surged by approximately 47.8% year-on-year, reaching around HK$82.6 million. This increase is complemented by a net profit margin that expanded by approximately 16.2 percentage points to approximately 50.2%. The board has proposed a final dividend of HK$1.15 per share.

Financial Performance Overview

For FY2026, Oi Wah recorded total revenue of approximately HK$164.4 million. The net interest margin also saw an increase, expanding to approximately 17.2%. As of February 28, 2026, the Group’s cash and cash equivalents, net of bank overdrafts, amounted to approximately HK$376.9 million, marking a substantial year-on-year increase of approximately 74.8%. The net assets rose to approximately HK$1,155.7 million, while the gearing ratio decreased to 4.1%. Earnings per share increased by approximately 48.3% year-on-year to HK$4.3 cents.

Business Segment Analysis

Mortgage Loan Business

In FY2026, the mortgage loan sector experienced a resurgence, contributing approximately HK$65.8 million, or 40% of the Group’s total revenue. The gross mortgage loan receivables stood at approximately HK$612.5 million as of February 28, 2026. The net interest margin for this segment was approximately 10.1%.

The Group maintained a disciplined approach to lending, particularly in light of the stabilization observed in the residential property market. However, caution was exercised regarding the commercial and industrial sectors due to ongoing supply challenges and valuation pressures. The underwriting strategy focused on building a resilient loan portfolio, prioritizing high-quality collateral and prudent loan-to-value ratios. The average loan-to-value ratio for first mortgages was approximately 56.27%, while subordinate mortgages averaged around 40.82%.

The Group’s effective credit risk management is reflected in the significant reduction of impairment losses on loan receivables, which decreased from approximately HK$46.3 million to approximately HK$12.7 million, a reduction of approximately 72.6%.

Pawn Loan Business

The pawn loan business also demonstrated robust growth, with revenue increasing by approximately 12.9% to around HK$98.6 million in FY2026. This segment’s profitability was enhanced by a notable 73.0% rise in gains from the disposal of repossessed assets, which reached approximately HK$19.2 million compared to HK$11.1 million in FY2025. The strong performance can be attributed to rising gold prices and an active secondary market for luxury items, particularly high-end timepieces.

To bolster brand visibility, the Group invested in advertising and promotional activities, generating demand for personalized pawn loan services for amounts exceeding HK$0.1 million.

Future Outlook

Looking ahead, Oi Wah remains cautiously optimistic about the global economic recovery. Despite ongoing macroeconomic and geopolitical uncertainties, the Group is committed to a proactive and prudent strategy aimed at ensuring sustainable long-term growth and maximizing shareholder returns.

In the mortgage loan market, the Group plans to adopt a calibrated approach, focusing on high-quality opportunities within the residential property segment while exercising caution in the commercial and industrial sectors. The Group will enhance oversight in credit underwriting and collateral appraisal to mitigate potential valuation risks.

The pawn loan business is expected to remain resilient, supported by stable gold prices and ongoing demand for liquidity management. The Group is actively optimizing its pawn shop network, seeking cost-effective locations to reduce operational overheads while maintaining a strong market presence.

Additionally, the strategic partnership with PACM Group will continue to drive geographic diversification, with a focus on exploring institutional credit opportunities in developed markets while ensuring rigorous investment oversight.

Edward Chan, Chairman and CEO of Oi Wah, emphasized the importance of a proactive management strategy in navigating the complexities of the current economic landscape. He noted that the Group’s core pawn loan business has proven to be a strategic tool for hedging against macroeconomic fluctuations, showcasing resilience amid market challenges.

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Oi Wah Pawnshop Credit Holdings Limited is a leading financing service provider in Hong Kong, specializing in short-term secured financing, including pawn and mortgage loans. Established in 1975, the Group operates ten pawnshops and one premium service center across various locations in Hong Kong. It diversified into the mortgage loan business in 2009 and became the first local pawn shop to list on the Main Board of The Stock Exchange of Hong Kong Limited on March 12, 2013.

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Published on 2026-05-27 19:23:00 • By the Editorial Desk