MARC Ratings has assigned preliminary AA-(cg)/MARC-1(cg) ratings with a stable outlook to Moneymax Treasure Sdn Bhd’s (MTSB) proposed RM200.0 million Tranche 1 (including RM50.0 million CP sub-limit) under a proposed RM500.0 million CP/MTN Programme. The facility is jointly and severally, irrevocably and unconditionally guaranteed by Cash Online Sdn Bhd (COSB) and its Singapore-listed parent, MoneyMax Financial Services Limited (MMFSL).
MTSB is a wholly-owned funding vehicle of COSB. The ratings reflect the credit strength of COSB and MMFSL as programme guarantors. COSB and MMFSL are primarily engaged in pawnbroking and related gold and jewellery retail activities in Malaysia and Singapore. COSB operates over 60 pawnbroking outlets across Peninsular Malaysia.
COSB generates strong lending margins from receivables (i.e. pledged loan assets) generated through its pawnbroking operations, with double-digit net interest margins (NIM) over the past five years. These pledged loans are well-collateralised, primarily by gold, and are granted according to a loan-to-value guideline of between 85% and 95% at origination, thereby providing a protective buffer against unredeemed pledges or defaults.
No impairments or loss provisions have been recorded on unredeemed pledges, reflecting the prompt disposal of collateral (pledged items), typically within the same month as forfeiture. Recoveries on unredeemed pledges have been strong, with positive profit margins from 2021–2025, supported by rising gold prices.
Net interest income from pledged loans represents COSB’s primary earnings driver, accounting for approximately 67% of net operating income in 2025 (2024: 69%). Pre-tax profit surged 90% to RM94.6 million in 2025, attributed to loan portfolio expansion supported by rising gold prices and the opening of additional outlets. NIM remained robust, underpinning a pre-tax return on assets of 12.9%. In line with its business model, COSB has reported no credit impairment losses over the past five years.
COSB’s equity base has grown steadily through retained earnings and capital infusions from its parent company to support outlet expansion in Malaysia. Leverage has remained moderate, with the company’s debt-to-equity ratio at about 1.0x–1.2x over the past three years; a full drawdown of Tranche 1 would raise it to around 1.8x based on the current equity level. Earnings have been consistently reinvested into the business, with no dividends remitted to MMFSL over the last five years.
COSB’s funding primarily comprises revolving credit facilities, with reliance on short-term funding mitigated by capital injections from its parent. As of 31 December 2025, available liquidity stood at RM79.1 million, comprising cash and RM58.7 million in unutilised credit lines. The CP/MTN programme will support working capital, loan growth and refinancing, while diversifying funding sources.