ValueMax Delivers Record 1H2025 Profit: Shareholders Eye Dividend Boost and Growth from Acquisitions

Stellar Interim Results Signal Strong Growth Momentum

ValueMax Group Limited, a leading name in Singapore’s pawnbroking, moneylending, and gold and jewellery retail sectors, has delivered a robust set of results for the first half of 2025. The Group posted a net profit of S\$48.8 million for the six months ended 30 June 2025, a significant rise from S\$35.9 million in the previous year’s corresponding period. This impressive 35.7% jump in net profit underscores the company’s operational resilience and successful growth strategies.

Key Financial Highlights Retail Investors Should Know

• Revenue surged by 16.8% to S\$268.3 million, up from S\$229.8 million in 1H2024.
• Gross profit jumped 27.7% to S\$81.1 million, reflecting stronger margins across all business segments.
• Earnings per share (EPS) rose 25.6% to 5.39 cents.
• Interim dividend of 1.20 cents per share declared, with a book closure date of 26 August 2025 and payment scheduled for 2 September 2025.
• Total assets now stand at S\$1.37 billion, while total equity has increased to S\$563.2 million.

Segment Performance: Retail & Trading Lead the Charge

For retail investors, it is worth noting that retail and trading of jewellery and gold remain the Group’s largest revenue drivers. This segment alone contributed S\$204.8 million, a 17.5% increase year-on-year. The pawnbroking and moneylending arms of the business also saw strong growth, with revenues up by 20.2% and 10.7% respectively.

Perhaps most importantly for future profitability, gross margin improved from 27.6% to 30.2%. All core business segments posted better margins, highlighting operational efficiency and strong pricing power in a rising gold market.

Strategic Acquisitions: Expansion to Drive Future Value

In March 2025, ValueMax completed the acquisition of Heng Heng Pawnshop Pte Ltd and Ban Fook Pawnshop Pte Ltd, further expanding its network within Singapore. These strategic moves are critical as they reinforce ValueMax’s position as a market leader in pawnbroking and jewellery retail. Investors should note that such acquisitions not only add to the Group’s revenue base but also present potential synergies and scale benefits that could further boost profitability in the coming quarters.

Dividend Policy and Shareholder Returns: What to Expect

The Board has declared an interim dividend of 1.2 cents per share (one-tier tax exempt), reflecting the company’s commitment to delivering sustainable returns. The Board also emphasized its intention to maintain or increase annual dividend payouts, consistent with its track record since listing. For yield-focused investors, this policy adds a layer of predictability and appeal.

Price-Sensitive Takeaways for Shareholders

• Significant profit growth (up 35.7%) and margin expansion could attract more institutional and retail investors, potentially driving share price appreciation.
• Acquisitions of Heng Heng and Ban Fook Pawnshops are likely to be earnings accretive and may signal further M&A activity.
• Dividend increase or maintenance in line with profit growth could bolster the stock’s attractiveness to income-seeking investors.
• Robust balance sheet with growing assets and equity provides a strong foundation for future expansion and resilience during uncertain market conditions.

Leadership Commentary

Mr. Yeah Hiang Nam, Executive Chairman of ValueMax, commented: “Our strong performance in 1H2025 reflects the resilience of our business model and the successful execution of our expansion strategy. We remain committed to building long-term value through steady growth and prudent management.”

About ValueMax Group Limited

Founded in 2003, ValueMax is a trusted leader in pawnbroking and a major retailer and trader of both pre-owned and new jewellery and gold. The Group also operates a moneylending business through its subsidiaries and is recognized for its customer-centric and responsible lending approach. For more information, visit www.valuemax.com.sg.

Investor Calendar

• Book closure date for interim dividend: 26 August 2025, 5.00pm
• Dividend payment date: 2 September 2025

Conclusion

ValueMax’s 1H2025 results showcase a company firing on all cylinders, with strong earnings growth, margin expansion, and a clear path to further value creation via strategic acquisitions. The robust dividend policy and healthy balance sheet further enhance its appeal to investors. These developments are likely to be price-sensitive and could act as catalysts for the share price in the near term.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult with a professional advisor before making investment decisions.

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