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Moneymax Financial Services

MoneyMax Financial Services - Focus on Retail Expansion

Author: kimeng    |     Publish date: Fri, 29 Nov 12:09

What is the News?

We  recently  attended  MoneyMax?s  3Q  results  briefing. MoneyMax  reported  a  decline  of  36.5%  y-y  in  revenue  at S$16.2  million.  This  is  mainly  due  to  lower  revenue  from retail  &   trading  segment,  resulting  from  lower  gold  prices and deliberate decision to increase inventory of pre-owned jewellery  and  watches  in  its  retail  outlets.  Despite  lower revenue, gross profit was higher 7.7% y-y due to a shift from trading  to  retail  sales  of  pre-owned  jewellery.  Retail  sales provide higher margin  of 6-10%,  compared to 1-3%  margin from trading. Net loss of $0.9 million was reported for 3Q. This  was  mainly  attributed  to  the  one-time,  non-recurring IPO  expense  of  S$1.2  million,  higher  advertising  and promotion  spending,  and  increase  in  rental  costs  for  new outlets on Serangoon Road, opened in August 13.

How do we view this?

We believe the strategic shift from  trading to retail sales of pre-owned  jewellery  would  yield  better  results  in  the  long term.  This  was  due  to  higher  margins  offered  from  retail sales as compared to trading sales. MoneyMax continues to improve  its  branding  through  its  marketing  campaign launched in July 2013, in conjunction with IPO.

Investment Actions?

We adjusted our forecast to reflect 3Q13 results and revised our  TP  to  S$0.425,  based  on  DCF  valuation.  TP  was lowered as we have under-estimated advertising and promo expenses for FY13E  in our previous  report.  We continue to be positive on the pawnbroking and the  retail and trading of pre-owned  jewellery  businesses  and  maintain  our  ?Buy? rating.  ...last: $0.330...
Source: PhillipCapital Research

 

 

Q3-2013 Results Briefing - seems quite good going forward. Can expect to declare CD by 4 Qtr. Price quite close to IPO price, think will move up soon.

 

some passive $ - http://mmm959.wix.com/phua

 

Will go back 40 cents but maybe during CNY.

Need to show lossess are halted.


Thereafter shd sell cos sti looks vulnerable after 6 years of bear trap in the making.

 

Hard.

  Especially when economy is recovering.

Hockey      ( Date: 20-Nov-2013 10:19) Posted: U think no chance to go back to 0.4 level???

 

MoneyMax Financial Services Ltd. has been included in the listing of the MSCI Singapore Micro Cap Index. MoneyMax is among the 19 companies added to the MSCI Singapore Micro Cap Index following an announcement by MSCI Inc. on the November 2013 Semi-Annual Index Review for the MSCI Equity Indices, made on 7 November 2013...

 

U think no chance to go back to 0.4 level???

 

Volumme vry vry low...boh ho play lah

FearValueGreed      ( Date: 16-Nov-2013 00:21) Posted: Never tell me . but there is a a gap at 355. May sell at that point around 35. Meantime. Just pray some ass come and conduct acquisitions. YEAHINVESTMENT      ( Date: 15-Nov-2013 22:59) Posted: I already sold all my moneymax shares. cutting losses.

 

Never tell me . but there is a a gap at 355. May sell at that point around 35.

Meantime. Just pray some ass come and conduct acquisitions.

YEAHINVESTMENT      ( Date: 15-Nov-2013 22:59) Posted: I already sold all my moneymax shares. cutting losses.

 

I already sold all my moneymax shares. cutting losses. 

 

The ceo keeps saying holding on to exisitng pawn items so that it cam be sold when new shops opens.

Doesn't sound logical and still says strategy working when all in red.

And never reinstate when the glory days will be back.

Looks like boarded a pirate ship not a pawn ship

 

Sian. Was hoping I can sell off at small kopi money.

Had been holding that moneymax for a long time. :( 

 

going up after mass selling...............................

 

Still dun undersrand why it reported lower profit .
Market still bidding up.

Strange as it sounds , my troops are awaiting Supreme commander decision.

 

D day lai liao.

 

looking forward for the financial result. 

 

Financial results. see company earning.

 

What is going on on the 15th?? What results out??

 

Phillip Securities Research Pte Ltd 28 October 2013 MoneyMax Financial Service Limited Rating 1 Buy - Previous Rating 0 Not Rated Target Price (SGD) 0.480 - Previous Target Price (SGD) NA Closing Price (SGD) 0.400 Expected Capital Gains (%) 20.0% Expected Dividend Yield (%) 0.0% Expected Total Return (%) 20.0% Raw Beta (Past 2yrs w eekly data) NA Market Cap. (USD mn / SGD mn) 114 / 142 Enterprise Value (USD mn / SGD mn) 180 / 222 3M Average Daily T/O (mn) NA 52 w eek range (SGD) 0.35 - 0.5 Closing Price in 52 w eek range Company Overview MoneyMax is one of Singapore?s largest pawnbroking chains with 29 outlets located island-wide, operating under the brands of ?MoneyMax? and ?Cash Online?. MoneyMax also provides retail and trading business of pre-owned gold, jewellery and watches. Two sources of revenue  Earns from interest income from providing short-term collateralized loans to customers.  Profit from sales of pre-owned gold, jewellery and/or watches. Investment Merits  Expect increasing demand for pawnshops: - Higher cash needs from tighter loan regulations - Reducing social stigma on stronger branding and better quality of service - Cheaper and quicker source of borrowing - Wide reach with convenient stops in the heartlands - Rising costs likely to boost business  Low-risk business model  Stronger holding, of interest in jewellery & watches  Experienced management team Peer Comparison ? Maxi-Cash and ValueMax  All three pawnshop chains are expected to experience increase in their pawnbroking profits  MoneyMax may have a higher growth potential from existing outlets as compared to ValueMax.  MoneyMax?s current P/E valuations lower, more attractive than Maxi-cash  MoneyMax does not currently give dividends  All three pawnshop chains may continue to grow partly through the acquisition of older pawnshops Key Risks  Current gold price volatility increases the risk and impacts profit margin  Increase in interest rates lowers profitability of pawnbroking business  Licences may fail to be renewed or obtained  Regulatory risks Investment Actions Based on our DCF valuations, assuming WACC of 8.0%, and terminal growth of 1.0%, we derive a target price of S$0.48. This gives an implied FY13E P/E multiple of 21.8X, and P/B multiple of 2.7X. While both multiples are high, we note the growth potential for MoneyMax and the pawnbroking industry. Based on the investment merits highlighted above, and current share price, we initiate coverage of MoneyMax with a BUY recommendation

 

Past few day transacted at 0.36/0.365 cents,I think some investor collecting this stock for the result.

hope this counter is has strong sentiment itself as price was not boosted by valuemax ipo.

Current market sentiment is not clear too,look like wait an see attitude for investors. 

 

 

ok we are D-7 days to result release.



 

HOld on to your seat, it will be choppy



 

I  mean upwards!!!!