ValueMax bags award as expansion spurs growth

Pawnbrokers were some of the best-performing companies in the finance sector in The Edge Singapore’s Centurion Club in 2019. With an overall score of 39.02 points, ValueMax Group beat eight other contenders — including insurers, financial and investment services providers and brokerages — to emerge top. Its peer and rival Maxi-Cash Financial Services Corp came in at third place with an overall score of 28.21 points.

ValueMax’s pole position was underpinned by its strong performance in profitability and return on equity over the last three years ended March. In particular, its profit after tax compound annual growth rate was 26.4% and its ROE CAGR was 10.7% over the period. This enabled it to obtain the highest PAT score of 26.41 points and highest ROE score of 10.71 points.

However, its shareholders’ return was less stellar. Over the last three years, the stock returned an annualised gain of just 3.2%. The company scored 1.9 points, ranking it fifth.

ValueMax opened its first pawnbroking outlet in 1988 and was listed on the Singapore Exchange in 2013. Much of the company’s growth can be attributed to the opening of new outlets and acquisitions.

Last year, it launched five new pawnbroking and retail outlets in Singapore, bringing the total number of its pawnbroking outlets in the city state to 33. These new outlets were located at Sengkang Square, Yishun Central, Bugis Village, Buangkok and West Mall. The company also has two pawnshops operated by associated and investee companies. In Malaysia, it operates 10 outlets through its associated companies.

In addition to its core pawnbroking business, ValueMax has expanded into moneylending, retail of jewellery and timepieces, as well as gold trading services.