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This week, i Capital updates on Elk-Desa Resources Berhad (ELK-Desa), which operates two core business segments: Hire Purchase (HP) Financing for used motor vehicles and Furniture Trading, involving wholesaling and retailing of home furniture.

ELK-Desa’s HP Financing segment remains the main contributor, contributing 94% to FY2024 earnings. It targets the small-value used car niche, one usually overlooked by traditional financial institutions. It provides HP financing for used vehicles aged below 20 years, with typical disbursements ranging from RM10,000 to RM35,000. Approximately 99.8% of FY2024 hirers were self-employed individuals and B40/M40 income earners. The average outstanding net HP receivables per hirer is relatively low at approximately RM1