Move will enhance the long-term value for its shareholders

[SINGAPORE] Pawnbroker MoneyMax Financial Services is looking to transfer its listing to the mainboard of the Singapore Exchange (SGX), from its current listing on the Catalist board. 

 

A listing on the mainboard would enhance the long-term value for its shareholders, the company said in a bourse filing on Wednesday (Jan 14).

 

The company said it has &ldquo undergone substantial growth&rdquo and expanded its services and business network since listing in 2013. It now has more than 110 outlets across Singapore and Malaysia.

 

As the mainboard is targeted at attracting larger companies, a listing there will provide the company with a platform that reflects its scale and well-established market position, it said.

 

MoneyMax has also &ldquo shown consistent growth&rdquo in its net profit, which came in at S$29.6 million for the six-month period ended Jun 30, 2025, from S$19.8 million in the whole of the financial year 2021.

 

Meanwhile, the company expects that a mainboard listing will boost its image locally and overseas, and give it greater visibility and recognition.

 

This could result in better liquidity and a better stock performance, as well as allow it to recruit better talent, strengthen its brand and attract new business opportunities, it said.

 

Furthermore, MoneyMax also expects it will have a wider platform and greater opportunities for future fundraising, as it will have access to a larger and more diverse investor market, including institutional and overseas investors.

 

The proposed transfer is subject to an in-principle approval from SGX, meeting all the relevant listing requirements, and obtaining shareholders&rsquo approval.

 

 

MoneyMax Financial Services is one of the Singapore Exchange&rsquo s (SGX) standout small-cap performers this year, with its share price surging 88% year-to-date close at 62 cents on July 22 &mdash a record high since its listing in August 2013.

 

The company, a leading pawnbroker and retailer of pre-owned luxury goods in Singapore and Malaysia, is riding multiple tailwinds: lofty gold prices, a larger pawnbroking loan book, retail expansion into high-margin commemorative gold products and strong return on equity.

 

According to RHB Bank Singapore&rsquo s Alfie Yeo in an unrated report dated June 17, MoneyMax is &ldquo firing on all cylinders&rdquo , with robust growth across all key business lines &mdash pawnbroking, gold retail and secured lending &mdash underpinned by elevated gold prices and strategic expansion across its store network.

 

MoneyMax has long been seen as a proxy to gold prices, and this is now playing to its advantage. Over the past four years, the correlation between MoneyMax&rsquo s share price and the price of gold has been 0.8. This year, with gold trading above US$3,000 ($3,835) per ounce, MoneyMax&rsquo s loan business is scaling up.

 

&ldquo Gold prices have a strong correlation to the value of pawnbroking loans &mdash both in volume and per-pledge value,&rdquo says Yeo.

 

The data shows a 0.7 correlation between gold price and loan volumes, and a 0.9 correlation for value per pledge.

 

As customers pledge gold at higher values, MoneyMax can extend larger loans, boosting net interest income. In its FY2024 ended Dec 31, 2024, MoneyMax&rsquo s revenue grew 36.5% y-o-y to $390.1 million, while recurring net profit jumped 69.4% to $40 million.

 

Return on equity hit 23.1% &mdash the highest among its Singapore-listed peers &mdash while the group trades at a modest 5.3 times historical P/E.

 

To scale its loan book, MoneyMax has steadily expanded its footprint across Singapore and Malaysia. It operates over 100 outlets, and continues to acquire smaller independent pawnshops, helping consolidate a traditionally fragmented industry. It is today one of the largest pawnbroking and retail chains in the region.

 

&ldquo There remains opportunity for further acquisition in Singapore, as some smaller pawnshops look to exit due to succession or monetisation reasons,&rdquo says Yeo.

 

MoneyMax is also innovating in customer experience. In Malaysia, it rolled out drive-through pawnshops to enhance convenience and security. The company continues to refresh its outlets, improve privacy features and raise customer service standards, a key differentiator in what is often seen as a commoditised space.

 

Beyond pawnbroking, MoneyMax is growing its retail business by targeting the higher-margin gifting segment. Its commemorative and souvenir gold products are often sold for special occasions, command better margins and are gaining traction.

 

Yeo notes that while the contribution from gifting remains small, it is growing steadily. &ldquo It allows the group to diversify away from low-margin generic gold jewellery,&rdquo he says.

 

MoneyMax is also scaling its secured lending arm, which comprises car and property-backed personal loans. This segment, started in 2018, now contributes 7% to total revenue.

 

It stands to benefit from a recovering consumer credit cycle in Singapore and strong demand for auto and home financing. According to Singstat and Nexdigm, the Singapore auto finance market was valued at US$10 billion in 2024 and is projected to grow at an 8% CAGR through 2030. This could provide a tailwind for MoneyMax&rsquo s loan growth outlook.

 

Despite its record earnings and high ROE, MoneyMax&rsquo s valuation remains modest. Compared to regional peers in Singapore and Malaysia, its P/E of 5.3 times is in line with or below companies with weaker margins and lower profitability. Its dividend yield of 2.9% is underpinned by a steady payout history spanning over a decade.

Yeo believes the market has not yet fully priced in the group&rsquo s earnings trajectory or balance sheet strength. &ldquo MoneyMax has consistently delivered double-digit earnings growth, yet it remains under the radar for many institutional investors,&rdquo he says.

 

The group has remained profitable through cycles, maintaining a net cash position while expanding its footprint. Its operating margin stood at 25% in FY2024, with a net margin of nearly 10% &mdash levels typically associated with more capital-light businesses. Looking ahead, MoneyMax is well-positioned to benefit from continued high gold prices, further retail penetration, and rising demand for secured lending.

 

&ldquo It offers investors a unique mix of defensive earnings, exposure to gold and consumer finance upside,&rdquo says Yeo.