Valuemax

Valuemax: Valuemax's management met DMG’s institutional shareholders at its Asean-Hong Kong Corporate Day. Key takeaways from the meetings are i) Expansion plans are on track with 20 outlets in Singapore and 8 in Malaysia by end of FY14, although they are still sourcing for the high-end pawnbroking outlet location which will be targeted to open by the end of the year. Going forward, ValueMax expects gold prices to stabilise and tip a 10 to 15% range from current levels, led by rising demand especially from Asian investors. At the current price, ValueMax trades at 19x trailing P/E versus closest peers Maxi-Cash’s 68x and MoneyMax’s 53x, which is rather unjustified.