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Precious metal
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Joelton
Supreme |
11-Apr-2026 13:36
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Trending with institutional investors, ValueMax changes perceptions of the pawnbroking business
In mass media, pawnshops are often portrayed as places where everyday folks try to pawn family heirlooms for money. A stereotypical scene involves a customer reluctantly passing their treasured possessions to the scowling pawnbroker &mdash usually sitting behind a high counter with grills &mdash who would appraise the items&rsquo value and share the loan quantum.
In reality, however, the pawnbroking sector has modernised to keep up with evolving customer needs and demand. Instead of merely being locations to borrow money, pawnshops, such as those operated by ValueMax Group, have also become destinations for gold and other luxury goods.
Establishing its first pawnbroking outlet in 1988, ValueMax and its associated and investee companies now operate 70 outlets in Singapore and Malaysia, according to the business&rsquo s website.
&ldquo Pawnbroking in Singapore was largely a traditional industry,&rdquo Yeah Lee Ching, managing director of retail and trading for ValueMax, tells The Edge Singapore in an email interview. &ldquo Over the years, we have modernised the model by combining pawnbroking with professional retail standards, technology and complementary financial services.&rdquo
One of the innovations introduced by ValueMax to spur growth was the transformation of pawnshops into retail spaces, with pawnbroking counters operating alongside jewellery retail displays within the same store. Yeah, the sister of CEO Yeah Chia Kai, says that this enhances the customer experience and allows the business to better monetise unredeemed collateral through jewellery retail.
She adds that ValueMax pioneered the processes for implementing the gross margin scheme to sell pre-owned gold and jewellery with little or no goods and services tax. By building this capability early, ValueMax was able to trade pre-owned jewellery at attractive prices and gain a first-mover advantage in this segment.
The company has also invested significantly in digital and operational systems, as well as enhancing funding flexibility by tapping credit via alternative solutions such as digital commercial papers. Together, all these measures have offered a platform for ValueMax to scale from a few pawnshops to one of the largest pawnbroking chains in Singapore.
In 2013, ValueMax&rsquo s successful growth enabled it to list on the Mainboard of the Singapore Exchange, becoming the first pawnbroker to achieve this feat. Following the listing, the Yeah family&rsquo s stake in the company exceeded 85% until recently: On Feb 26, it was announced that Yeah&rsquo s father &mdash founder and executive chairman Yeah Hiang Nam &mdash and his wife, Tan Hong Yee, had sold 34.8 million shares at $1.16 each to a group of investors, bringing the family&rsquo s holdings down to 81.53%.
The group of investors included abrdn Asia, Amova Asset Management Asia, Avanda Investment Management, and ICH Synergrowth Fund, which collectively forked out $40.37 million to buy these shares. Two of them, Armova and Avanda, are appointed fund managers under the Monetary Authority of Singapore&rsquo s Equity Market Development Programme.
When asked about the reasons for the transaction and who initiated it, Yeah says the transaction aims to broaden ValueMax&rsquo s institutional shareholder base and improve share liquidity. She adds: &ldquo Such placements are typically facilitated through discussions between shareholders, financial advisers and institutional investors.&rdquo
ValueMax managing director Yeah Lee Ching says pawnbroking laid the foundation for the company to expand into related areas such as real estate and car financing, moneylending, gold, jewellery and branded watch retailing as well as precious metals trading.
Institutional investment worthy
Jaimes Chao of Tickrs Financial Singapore views the vendor share sale positively. In his Feb 26 report, Chao wrote that by increasing the counter&rsquo s estimated free float by around 32% from 110 million shares to 145 million shares, the deal addressed a &ldquo structural weakness&rdquo of thin free float that deterred institutional participation and contributed to wider bid-ask spreads.
Pointing out that the buyers are long-only institutional funds and, in particular, one of the region&rsquo s largest asset managers (abrdn Asia), Chao believes this validates ValueMax&rsquo s investment credentials. &ldquo This is the type of shareholder base transformation that typically precedes sustained re-rating,&rdquo he adds.
It was also stated that the transaction supports ValueMax in meeting the eligibility criteria for inclusion in indexes such as the iEdge Singapore Next 50 Index. Chao expects index inclusion to catalyse passive fund flows and further improve liquidity, leading to a &ldquo self-reinforcing cycle&rdquo .
Additional positive points about the share sale include its non-dilutive nature and the Yeah family&rsquo s 90-day moratorium on further share sales, which signals commitment and confidence in the company.
From Chao&rsquo s perspective, the block trade transformed a key risk &mdash low free float &mdash into share price catalysts, including institutional ownership, index eligibility and improved liquidity, without any drawbacks such as dilution and loss of key management.
Branching out from pawnbroking
While the vendor-share sale is perceived as unlocking dormant value, the fundamentals of ValueMax&rsquo s business must first be strong enough to attract investment. For FY2025, ValueMax delivered a record set of results, with profit after tax rising 23.7% y-o-y to $103.6 million and revenue up by 21.3% to $553 million.
ValueMax attributes the strong performance to higher contributions across its pawnbroking, retail and trading of jewellery and gold, and moneylending segments, supported by stronger gross margins and increased share of results from associates.
On a segmental basis, the retail and trading of jewellery and gold is the largest contributor to the top line and bottom line for FY2025, with external revenue exceeding $425 million and segment profit of $45.8 million. Meanwhile, the moneylending segment reported external revenue of nearly $67.3 million, with segment profit close to $36 million, while pawnbroking earned external revenue of $60.8 million and segment profit of around $25.8 million.
Historically, following its 2013 stock market debut, pawnbroking was the highest profit contributor until FY2021, when it was overtaken by the moneylending division, which in turn was overtaken in FY2025 by the retail business.
&ldquo Pawnbroking gave us deep experience in collateral valuation and secured lending,&rdquo says Yeah. &ldquo From there, it was natural to expand into related areas such as real estate and car financing, moneylending, gold, jewellery and branded watch retailing as well as precious metals trading.&rdquo
Yeah, adds that diversification into other businesses has enhanced earnings resilience. &ldquo Instead of relying on a single business line, ValueMax today has multiple complementary revenue streams that support long-term growth.&rdquo
Elaborating on its growth strategy, Yeah says the company aspires to become a diversified financial services group anchored on asset-backed lending and precious metals activities. Besides continuing to expand its branch network and strengthen its retail presence for pre-owned jewellery and watches, the company also seeks to increase its trading activities and footprint in the precious metals value chain, and to expand its secured loan portfolio, while maintaining strong credit discipline in the markets it operates in.
&ldquo Singapore remains our core market,&rdquo says Yeah, adding that ValueMax&rsquo s associated company in Malaysia, Well Chip, provides a strong platform for the company to participate in Malaysia&rsquo s pawnbroking, jewellery retail and secured lending market.
&ldquo The Malaysian market has a large population and growing demand for alternative financing options. Our focus is on growing the business steadily via greenfield developments and strategic acquisitions while strengthening operational capabilities and brand recognition.&rdquo
Well Chip is listed on the Main Market of Bursa Malaysia. Based on its April 6 closing price of RM1.26 ($0.32), Well Chip had a market capitalisation of approximately RM756 million. ValueMax, which owns a 65.5% indirect stake in Well Chip, recently saw its market cap cross $1 billion at its April 6 closing price of $1.07, having hit an all-time high of $1.34 on Feb 23.
A &ldquo golden counter-cyclical&rdquo play
On March 27, Singapore announced its ambitions to become a gold trading hub, and Yeah is upbeat about the development. &ldquo Greater participation from banks, funds and financial institutions helps to strengthen Singapore&rsquo s ecosystem as a precious metals trading hub,&rdquo she says. &ldquo Increased awareness and investor participation in gold markets can also support demand across the broader gold value chain, including trading and physical gold products.&rdquo
Yeah sees global interest in gold remaining strong, as investors look for safe-haven assets during periods of economic uncertainty. &ldquo Our precious metals trading business benefits from this environment through bullion trading and related activities in the precious metals supply chain,&rdquo she says.
In a report on April 1, DBS analyst Lim Rui Wen describes ValueMax as a &ldquo golden counter-cyclical&rdquo play. While Lim did not rate the stock, she sees positive upside potential, with a valuation of $1.45 per share, representing a 34% gain from its April 1 closing price of $1.08. Lim&rsquo s valuation is based on 11 times forecasted FY2026 P/E.
From Lim&rsquo s perspective, pawnbrokers such as ValueMax benefit from gold&rsquo s fundamentals. In addition, with the Middle East conflict as a backdrop, she views pawnbroking as a countercyclical hedge amid a weaker macroeconomic outlook and inflation concerns.
Analysing the company, Lim notes that the CAGR from FY2021 to FY2025 were 16%, 15%, and 15% for pawnbroking, retail, and secured lending, respectively. Lim notes that the growth was driven by both organic and inorganic factors. These include increased investor appetite for gold and higher gold prices, leading to expansion of the pawnbroking loan book and store expansion and acquisitions.
Meanwhile, Tickrs&rsquo Chao maintains his &ldquo buy&rdquo rating with an increased target price of $1.55, reflecting the step-change in profitability, structural gold tailwinds, and a narrowing valuation discount to peers. Using a blended methodology, he values ValueMax at approximately 13 times for FY2025 P/E, cross-checked with a 12 times FY2026 estimated P/E and a discounted cash flow analysis yielding $1.40 per share.
Since the start of 2025, the counter has gained 140%. With its record-breaking FY2025 results, Chao notes that ValueMax has crossed a &ldquo landmark&rdquo profit threshold as its integrated pawn-and-gold model &ldquo fires on all cylinders&rdquo . The market and institutional investors seem to agree.
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SmallSmall
Supreme |
10-Apr-2026 13:00
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Corporate moves
Trending with institutional investors, ValueMax changes perceptions of the pawnbroking business  Lin DaoyiFri, Apr 10, 2026 &bull 12:50 PM GMT+08 &bull 8 min read
 ValueMax' s shares have gained 140% since the start of 2025. Photo: Bloomberg
 In mass media, pawnshops are often portrayed as places where everyday folks try to pawn family heirlooms for money. A stereotypical scene involves a customer reluctantly passing their treasured possessions to the scowling pawnbroker &mdash usually sitting behind a high counter with grills &mdash who would appraise the items&rsquo value and share the loan quantum. In reality, however, the pawnbroking sector has modernised to keep up with evolving customer needs and demand. Instead of merely being locations to borrow money, pawnshops, such as those operated by ValueMax Group, have also become destinations for gold and other luxury goods. Establishing its first pawnbroking outlet in 1988, ValueMax and its associated and investee companies now operate 70 outlets in Singapore and Malaysia, according to the business&rsquo s website. |
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treetops
Elite |
01-Apr-2026 08:04
Yells: "Moments Today, Memories Tomorrow!" |
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Gold price rising. Will test 1.10 today. | ||||
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SmallSmall
Supreme |
12-Mar-2026 06:39
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Story Highlights
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Samudera
Member |
11-Mar-2026 18:45
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Inclusion
https://links.sgx.com/1.0.0/corporate-announcements/6IXLNDZWHLHCHE0J/ae08714e7957621d6b24db59d90bc214f222d7fa175e0204d0b8d1a92348bf25
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JurongW
Elite |
03-Mar-2026 16:45
Yells: "Earnings give weight, Chart give wings" |
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https://api2.sgx.com/sites/default/files/2026-02/FY2025%20UPDATE%20-%20ValueMax%20Group%20Ltd%20-%20Golden%20Century%20-%20The%20S%24100%20Million%20Milestone.pdf Target Price: $1.55 |
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eric998
Supreme |
02-Mar-2026 20:15
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ValueMax is mainly a pawnbroking + retail jewellery + secured lending business. Their profit depends on Pawn loan volume, Interest income, Retail jewellery margins, Loan book growth, NPL (bad debt) risk. Gold price increase depends on what if fewer people sell jewellery (they hold for higher price), Inventory replacement cost increases, etc.
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SJ0724
Member |
02-Mar-2026 18:13
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But this valuemax doesnt seems to react to the rising gold effect.. Unlike CNMC.. And what does the big funds saw and buy into it last week..?
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muifan
Supreme |
02-Mar-2026 10:40
Yells: "Take the leap of faith dont regret 20 years later!" |
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Good opportunity for you to add
Funds onboard already done the background work for you As to why the price is dropping , shortist, contra , traders Cheers
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stlimst
Master |
02-Mar-2026 10:19
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Price still dropping despite gold price jumping up. Can' t even hold the $1.16 price. SGX market is not your normal market.
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muifan
Supreme |
02-Mar-2026 09:18
Yells: "Take the leap of faith dont regret 20 years later!" |
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Trump says war in Iran could last a month, vows to avenge US military deaths |
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muifan
Supreme |
28-Feb-2026 22:48
Yells: "Take the leap of faith dont regret 20 years later!" |
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With fund house like , Amova Asset Management Asia, Avanda Investment Management, onboard Valuemax, it give another vote of confidence into pawnbroking and gold related businesses. CNMC and the 3 pawnbroking horses will have some panic buying on Mon. These 4 will be superb proxies to the surging gold price. |
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SmallSmall
Supreme |
28-Feb-2026 17:53
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Gold up 1.92% as a safe haven after middle east escalations. Good for the pawn broking business as their inventory values goes up
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muifan
Supreme |
26-Feb-2026 11:48
Yells: "Take the leap of faith dont regret 20 years later!" |
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Funds come in not for meagre returns sounds good to me 😛 😛 😛
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SmallSmall
Supreme |
26-Feb-2026 11:16
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Funds come in not for meagre returns. Given its very tight free float, can only say it is up to the big guys to dictate the share price whether it is $1.16 or $1.60 .
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muifan
Supreme |
26-Feb-2026 11:03
Yells: "Take the leap of faith dont regret 20 years later!" |
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$1.16 is about PE 10 ....means they confident can go higher
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SmallSmall
Supreme |
26-Feb-2026 11:00
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This are the married trades mentioned below.
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muifan
Supreme |
26-Feb-2026 10:54
Yells: "Take the leap of faith dont regret 20 years later!" |
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today another married 15mio shares...
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SmallSmall
Supreme |
26-Feb-2026 10:19
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The Institutions are onboard...... Yeah Hiang Nam, executive chairman of Valuemax Group, and his wife, Tan Hong Yee, have sold 34.8 million shares at $1.16 to a group of investors. Following the sale, they retain a controlling stake of 81.53%. According to the company' s FY2024 annual report, as at March 10 2025, Yeah held a deemed interest in 85.09% of the shares. The investors that have forked out $40.37 million to buy these shares include abrdn Asia, Amova Asset Management Asia, Avanda Investment Management, and ICH Synergrowth Fund. The selling price of $1.16 is a discount of around 6.5% to the Feb 24 closing price of $1.24. The sale was managed by Oversea-Chinese Banking Corporation. According to Valuemax, the deal was " strategically" undertaken to diversify and institutionalise its shareholder base. The company says this transaction will help broaden minority shareholder representation, and is expected to improve the trading liquidity and free float of its shares, which also supports the company in meeting the eligibility criteria for inclusion in indexes such as the iEdge Singapore Next 50 Index. Valuemax also notes that as these are vendor shares and not placement of new shares, other shareholders are not diluted. Supported by record gold prices, Valuemax Group' s share price has gained more than 150% in the past one year. |
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kye_lin
Master |
24-Feb-2026 12:52
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Same as MoneyMax.. Sell on news... Good results priced in already... Profit taking | ||||
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