ValueMax H1 net profit holds steady at S$25 million; warns of gold price volatility
Uma Devi
VALUEMAX Group on Monday (Aug 14) posted a net profit of S$25.1 million for the first half of the year, down 0.4 per cent from earnings of just under S$25.2 million in the corresponding year-ago period.
On a per-share basis, earnings came in at S$0.0343 versus S$0.036, the group said in a bourse filing.
No dividend was declared for the period under review, unchanged from the year ago.
Revenue for H1 was down 1.1 per cent to S$151.8 million. The group’s revenue from retail and trading of pre-owned jewellery and gold business fell by S$13.9 million, but this was partially offset by increases in revenue contributions from the pawnbroking and moneylending businesses of S$4 million and S$8.3 million, respectively.
Cost of sales fell 4.4 per cent to S$106.1 million. Cost of goods sold for retail and trading of pre-owned jewellery and the gold business declined by S$14.1 million, in line with the drop in revenue, while cost of sales for the pawnbroking and moneylending business rose by S$3.8 million and S$5.4 million respectively, mainly due to higher interest rates in H1 compared to the year-ago period.
ValueMax said gold prices had pushed past US$2,050 per ounce in early May, and have fallen below US$1,980 per ounce since. Though markets expect a slower rise in interest rates, rising geopolitical tensions mean that gold prices may “continue to remain volatile”.
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The company said it continues to face a “challenging business environment and increased competition”. It added that it will continue to explore acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets, as well as its moneylending business.
The group said its Malaysian associated companies are also in the process of restructuring, with a view to preparing for potential fundraising and/or other “capital market opportunities”.
These are subject to macroeconomic and market conditions, ValueMax said, adding that it will make appropriate announcements as and when there are material developments.
Shares of ValueMax ended flat at S$0.315 on Monday, prior to the results filing.
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