MoneyMax: A golden opportunity within SGD bonds

• MoneyMax delivered record FY25 earnings, with revenue up 39% and profit after tax up 83%.
• Growth was driven mainly by retail & trading and pawnbroking, supported by higher gold prices. Pawnbroking remains a higher-quality earnings driver, supported by sizeable lending spreads and loan-book growth.
• Despite MoneyMax’s balance-sheet intensive nature, its collateral-backed receivables, gold-linked inventory and stronger coverage support its credit profile.
• Its 2028 bonds remain attractive, offering around 4.6% yields with improved credit fundamentals.

MoneyMax Financial Services Ltd. (MoneyMax) is a Singapore-listed financial services group focused on pawnbroking, retail & trading of luxury products, and secured lending. It operates across Singapore and Malaysia, with a fast-growing network that allows it to originate pawnbroking loans and sell gold, jewellery, and other luxury items (Chart 1). We delve deeper into its recent financial performance below.

Chart 1: Segmental breakdown of MoneyMax’s business

Business model of MoneyMax

In pawnbroking, MoneyMax extends short-term loans secured against pledged valuables. These loans are typically small-ticket and convenience-driven, allowing MoneyMax to charge higher interest rates than conventional secured loans. Existing pawnbroking regulations allow it to charge up to 1.5% and 2.0% per month in Singapore and Malaysia respectively. In practice, it charges around 1.0% - 1.5% per month in Singapore, and slightly higher rates in Malaysia.

MoneyMax’s retail & trading segment provides a natural monetisation channel for sourced inventory and forfeited collateral (from pawnbroking). This segment is driven by sales volumes and inventory turnover, as well as changes in gold prices. Importantly, inventories are generally carried at the lower of cost and net realisable value, and profits are only recognised when inventory is sold. This means sustained gold price appreciation can support margins and profitability for multiple reporting periods, particularly when MoneyMax sells older inventory carried at lower historical cost.

As of December 2025, MoneyMax operated 113 outlets across Singapore (51) and Malaysia (62), including 15 drive-through outlets. MoneyMax has a dual growth profile: a relatively mature Singapore business that anchors its revenues and profits, and a Malaysian footprint that provides significant expansion (Table 1).

Table 1: Geographical breakdown of MoneyMax’s business (Singapore vs Malaysia)

Strong double-digit performance in FY25

MoneyMax delivered a record FY25, with earnings growth materially outpacing revenue growth. Revenue rose 39% y/y to $542m, EBIT grew 55% to $130m, while profit after tax grew 83% to $76m (Table 2). Net margin also improved from 10.7% in FY24 to 14.1% in FY25, as revenue growth outpaced several major cost lines, including material costs (+38%), employee benefits (+27%), and finance costs (+9%). This was notable considering margins had ranged from 8% to 12% in the past few years (Chart 2).

Retail & trading and pawnbroking were the two main drivers of FY25’s strong performance. Retail & trading revenue rose 43% y/y, supported by higher sales volume, a wider customer base, and favourable gold prices. Pawnbroking revenue increased 46% y/y, driven by a larger loan book and higher interest income. These two segments were also important at the profit level, generating $41m and $33m of profit after tax, respectively, compared with $76m on the group level*.

(*There were -$23m of net losses under ‘eliminations’ which we mainly attribute to inter-segment sales between retail & trading, and pawnbroking. Furthermore, the ‘others’ segment delivered $19m in net profits despite only $0.4m in revenues, suggesting consolidation effects. These items affect profit allocation across segments, but not the overall effect on consolidated group profit.)

Gold prices supported both sides of MoneyMax’s business model in FY25. In pawnbroking, higher gold prices increased collateral values, allowing customers to borrow more against gold-based pledges and supporting loan book growth. In retail & trading, higher gold prices lifted transaction values and may have encouraged more customer buying and selling activity. MoneyMax likely also benefited when selling older inventory or previously forfeited collateral carried at lower cost, with upside recognised primarily only when such inventory is sold.

Overall, FY25 was a strong year for MoneyMax, supported by broad-based growth in key operating segments and a favourable gold price environment.

Table 2: Revenue and profit breakdown for MoneyMax

Chart 2: Sharp improvement in net margins in FY25

Earnings growth should moderate after an exceptional FY25, but the outlook remains positive

MoneyMax’s earnings outlook remains positive, supported by outlet expansion, a larger pawnbroking loan book, and still-elevated gold prices. Singapore remains the group’s key revenue base (as a top 3 pawnbroker), while Malaysia provides the faster-growing network opportunity. Management has highlighted its plans for disciplined growth through selective acquisitions, store modernisation, digital engagement, and innovative formats such as drive-through pawnshops in Malaysia. A wider network should support more loan originations and customer traffic, though execution discipline remains important given associated staff, rental, and setup costs.

Pawnbroking should remain MoneyMax’s higher-quality earnings driver, supported by a sizeable lending spread. MoneyMax Singapore’s lending rates are well-publicised at 1.0% - 1.5% per month (non-compounded), equivalent to 12% - 18% per year. Our estimates imply a lending yield of around 15% p.a., broadly stable despite gold price volatility. Meanwhile, borrowing costs fell alongside overall SORA trends in FY25, helped by MoneyMax’s reliance on floating-rate bank loans. Overall, the pawnbroking segment’s net interest-like margin remains at around 9% - 11% (Table 3), though future growth should be driven by higher loan balances rather than material margin expansion.

(Just like in FY25, higher gold prices would also support pawn-ticket sizes and hence the size of MoneyMax’s loan book.)

By contrast, retail & trading revenues are more sensitive to market dynamics. This segment should benefit if gold price volatility encourages customers to buy, sell, or trade gold. Higher gold prices also lift transaction values. Gross margins should benefit from a rising gold price environment because MoneyMax can sell older inventory at current market-linked prices while carrying items at historical cost. However, this benefit should moderate over time as inventory is replenished at higher prices, especially with gold prices somewhat plateauing in 2025 after a record run in 2024.

Peer read-throughs suggest that the operating backdrop remains favourable. Aspial Lifestyle (which owns Maxi-Cash and Lee Hwa Jewellery) reported a voluntary 1Q26 business update showing strong revenue growth (48% y/y) and profit before tax growth (140% y/y). While MoneyMax’s business mix is not identical to Aspial’s, we think it supports the view that MoneyMax remains well-positioned.

Overall, we think MoneyMax remains on track to deliver another year of good growth in FY26, though FY25’s pace of margin expansion may be difficult to replicate. Outlet expansion should sustain customer traffic, pawnbroking should remain a steady source of income, and elevated gold prices should continue to support both collateral values and retail transaction values.

Table 3: Net interest margin now close to 11%, driven primarily by lower borrowing rates

MoneyMax is balance sheet intensive, but we remain comfortable

We view MoneyMax as a balance sheet intensive issuer. Its retail & trading business requires the business to hold inventory before sale, exposing it to inventory price risk. A sharp fall in gold prices could reduce revenues, pressure margins, and, in a severe scenario, even lead to inventory writedowns. For now, gold prices have remained resilient year-to-date, while MoneyMax’s established market position in Singapore should help support resale execution and margins, though market position will not fully insulate the group from a sharp gold price correction.

Furthermore, its pawnbroking business is also funding-intensive because loan growth requires upfront cash. This includes minimum paid-up capital per pawnshop - $2m in Singapore and MYR 4m in Malaysia – as well as liquidity to fund pawn loans. Cash is only recovered when customers repay their loans or when unredeemed collateral is forfeited and sold – this makes the business asset-backed but not necessarily cash-like. Nonetheless, collateral risk remains manageable for now, provided MoneyMax maintains loan-to-value (LTV) discipline. MoneyMax indicated in a late-2025 meeting that gold-item LTV ratios were around 90% or higher, while non-performing loans (NPL) ratios stayed broadly stable even during a ~10% gold price correction in late 2024. This provides comfort on historical collateral performance, though we again emphasise that a sharp gold price decline remains a key sensitivity.

MoneyMax’s key balance sheet ratios remained broadly steady in FY25, reflecting business growth rather than a material change in liability management (Table 4). We observe higher loan receivables on the assets side matched by higher financial liabilities, as MoneyMax typically seeks back-to-back or collateral-backed bank financing for its consumer loans. In addition, total liabilities grew more quickly than current liabilities, though this was due to its $100m bond issuance in October 2025 (subsequently upsized to $130m in 2026).

MoneyMax remains asset-rich but cash-light. MoneyMax held just $23m in cash and equivalents (after netting off $5m of overdrafts) as of December 2025, which is small relative to its current liabilities of $732m and FY25 finance costs of $34m. We are not overly concerned at this stage, as much of its short-term funding is supported by near-term receivables (i.e. pawnbroking loans). Barring significant market events, we believe incoming cashflows from loan repayments and inventory sales should help recycle working capital and support the repayment and rollover of short-term facilities. To us, MoneyMax’s low cash position is near a near-term concern under our base case, but continued access to bank lines and debt markets remains central to its credit story.

Table 4: MoneyMax’s balance sheet metrics held steady in FY25

Cash flows and debt servicing capabilities remain intact

MoneyMax continued to deliver positive operating cashflows (OCF) in FY25, also improving from the previous year. OCF before working capital changes was $154m in FY25 (FY24: $106m), helped by stronger revenue and profitability. Capex was also minimal, typically under $5m each year.

OCF after working capital changes remained negative (i.e. outflows). This is not unusual, because when MoneyMax extends pawnbroking loans, cash leaves the group first (recorded as receivables), and is only recovered later when customers repay their loans by redeeming their pledged items. As such, negative OCF may reflect loan-book growth (more loans given out) rater than weak profitability. The important factor in this scenario, is whether MoneyMax retains access to bank loans to fund this loan growth.

Meanwhile, MoneyMax’s debt servicing capacity improved materially in FY25. Finance costs increased just 9% to $34m, compared to the 55% increase in EBIT to $130m or similar improvement in OCF to $154m. Hence, EBIT interest coverage improved to 3.83x, while OCF coverage also improved to 4.54x, suggesting a comfortable earnings and cashflow buffer against funding costs (Table 5).

Table 5: MoneyMax’s debt servicing capabilities remain intact

Bond recommendations

To summarise, MoneyMax delivered a strong FY25 performance helped by business growth amid a supportive gold price environment. While the group remains balance sheet intensive, its key balance sheet metrics remained stable, while debt servicing capacity improved on stronger earnings and cashflows. This supports our view that MoneyMax’s credit profile has improved in FY25, though refinancing access and gold price risk remain key sensitivities.

We find MoneyMax’s 2028 bonds (MMFSSP 5.000% 30Oct2028 Corp (SGD)) attractive at today’s yields of around 4.6%. This yield is compelling for a short-to-medium tenor SGD non-perpetual bond, particularly given MoneyMax’s improved credit profile. It is also clearly on the higher side relative to the broader SGD non-perpetuals space.

We note that MoneyMax’s bonds offer yields similar to or lower than Aspial Lifestyle’s (MSFSSP) bonds despite their similar business models. However, we note that availability and liquidity may be more sporadic for Aspial Lifestyle’s bonds. We maintain our recommendation for Aspial Lifestyle’s bonds too, but investors comparing between these two issuers should consider bond availability on top of yield.

Against other high-yield SGD issuers, MoneyMax’s 2028 bonds still screen attractively on yield. Its roughly 4.6% yields sit on the higher side compared with several higher yielding SGD non-perpetual peers - including Thomson Medical Group (TMGSP) and Q&M Dental (QNMSP).

Meanwhile, the choice between MoneyMax and other issuers may depend on the type of risk investors prefer. MoneyMax bondholders are more exposed to gold price volatility and refinancing access. By contrast, bondholders of Perennial, for instance, should monitor exposure to China healthcare exposure and risks associated with its privately owned structure. IREIT bondholders, for example, should track leasing and asset-repositioning progress at Berlin Campus. Overall, we think MoneyMax’s 2028 bonds offer an attractive risk-reward proposition for investors comfortable with gold-linked risks.

Table 6: Bond comparison (MoneyMax bond bolded)

Declaration: For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds positions in TMGSP 4.650% 29Oct2029 Corp (SGD), TMGSP 5.500% 31May2028 Corp (SGD), and QNMSP 3.950% 10Jul2028 Corp (SGD). The analyst who produced this report hold NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.