According to RHB Bank Singapore’s Alfie Yeo in an unrated report dated June 17, MoneyMax is “firing on all cylinders”, with robust growth across all key business lines — pawnbroking, gold retail and secured lending — 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’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’s loan business is scaling up.
“Gold prices have a strong correlation to the value of pawnbroking loans — both in volume and per-pledge value,” says Yeo.
The data shows a 0.7 correlation between gold price and loan volumes, and a 0.9 correlation for value per pledge.
See also: iFast confirms CP Invest’s sale of 14.35 mil shares, bringing interest down to 4.9%
As customers pledge gold at higher values, MoneyMax can extend larger loans, boosting net interest income. In its FY2024 ended Dec 31, 2024, MoneyMax’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% — the highest among its Singapore-listed peers — 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.
See also: iFast plunges nearly 11% after Cuscaden Peak subsidiary sells shares at 6.7% discount
“There remains opportunity for further acquisition in Singapore, as some smaller pawnshops look to exit due to succession or monetisation reasons,” 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. “It allows the group to diversify away from low-margin generic gold jewellery,” 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’s loan growth outlook.
Despite its record earnings and high ROE, MoneyMax’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.
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
Yeo believes the market has not yet fully priced in the group’s earnings trajectory or balance sheet strength. “MoneyMax has consistently delivered double-digit earnings growth, yet it remains under the radar for many institutional investors,” 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% — 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.
“It offers investors a unique mix of defensive earnings, exposure to gold and consumer finance upside,” says Yeo.
Read about the full slate of five stocks to watch:
- MAS picks Avanda, Fullerton, JP Morgan for $1.1 bil placement; The Edge Singapore picks five stocks to watch
- Can Old Chang Kee be a yummy staple among investors?
- GuocoLand’s Grade A buildings a bulwark for revenue, earnings and valuation
- Centurion breaks above $1 bil market cap milestone, with more to come
- Banyan Group’s asset-light strategy paves growth runway as earnings and pipeline expand
