KUALA LUMPUR (Aug 9): Focused on the used-car segment, non-bank lender ELK-Desa Resources Bhd is confident it can continue to sustain its robust growth momentum in the small value financing segment which is underserved.

ELK-Desa said it intends to grow its hirer base in a sustainable manner without compromising on asset quality, noting over the last five years it had grown at a compounded annual growth rate of 15%.

"ELK-Desa has carved out a niche as a reputable lender in the used passenger car market, targeting buyers who are seeking small value financing. This market continues to be under-served as demand far outweighs supply," it said in a statement today after its annual general meeting (AGM).

It also noted its management has remained vigilant on risk management and asset recovery, and that it had lowered its non-performing loan ratio to 1% as at March 31, 2018 from 1.2% a year ago and 2.2% five years ago.

At its 29th AGM, shareholders approved a resolution proposing a single-tier final dividend of 3.5 sen per share for the financial year ended March 31, 2018. As an interim dividend of 3.25 sen was paid in February, the total payout for FY18 was 6.75 sen per share.

"This marked the third consecutive year the group has paid out total annual dividends amounting to 6.75 sen per share, which is higher than the annual dividend policy of 60% set by the board of directors," the company said.

In FY18, the group's net profit increased 12.7% to RM25.92 million from RM23 million the previous year, primarily due to the growth of its hire purchase financing division. Meanwhile revenue rose 10.2% to RM104.13 million from RM94.49 million in FY17.

At 4.20pm, ELK-Desa was down 1 sen or 0.84% to RM1.18 with 10,900 shares traded.