Inflection point: ValueMax profit net profit surges 36.7% in 2Q

The pawnbroker is up for a strong 3Q and 4Q.

Helped by recovering and stable gold prices since the end of last year, ValueMax Group (Valuemax) saw a firm turnaround in 2Q14 from a plunge in gold prices in FY13.

In a release, RHB indicates that ValueMax’s 2Q14 net profit surged 36.7% y-o-y to SGD2.5m, while its topline improved 18.8% y-o-y to SGD82.8m on increased contributions from retail and trading of pre-owned jewellery and gold business.

RHB adds that as gold prices plunged in both April and June last year, RHB expects a stronger 3Q and 4Q going forward.

With the opening of three pawnshops in Singapore in the last two months, namely in Bukit Batok, Yishun and Punggol, as well as a pawnshop acquired in Bedok, Valuemax’s total number of outlets increases from 18 to 22. In Malaysia, its pawnshop outlet in Taman Universiti, Johor, has commenced pawnbroking operations in June this year, with two other outlets undergoing renovation at the moment. Once ready, the group will have a total of eight outlets in Malaysia.