UOB-Kay Hian Holdings Limited (U10) AI Stock Analysis

• Market Cap: S$2.55B
• Dividend Yield: 4.63%
• Average Volume (3M): 749.30K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.81
• Revenue Growth: 7.87%
• EPS Growth: -4.03%
• Country: SG
• Employees: 3,123
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.11
• Shares Outstanding: 984,188,230
• 10 Day Avg. Volume: 641,890
• 30 Day Avg. Volume: 749,300
• PEG Ratio: 0.26
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 2.90
• P/FCF Ratio: -15.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$34.25
• Price Target Upside: 1217.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: S$2.50 ▼(-3.85% Downside)

UOB-Kay Hian Holdings Limited's overall stock score is driven by its strong profitability and attractive valuation. However, the declining revenue and negative operating cash flow are significant concerns. The technical indicators suggest a neutral market sentiment, contributing to a moderate overall score.

Positive Factors

Profitability

A high net profit margin indicates efficient cost management and strong profitability, which can support long-term financial health and reinvestment opportunities.

Board Restructuring

The restructuring and committee merger can improve governance and strategic oversight, potentially leading to better decision-making and long-term growth.

Debt Management

Improved debt management enhances financial stability and flexibility, allowing the company to better navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Revenue Decline

Declining revenue can impact long-term growth prospects and may require strategic adjustments to address market challenges and sustain profitability.

Negative Operating Cash Flow

Negative operating cash flow indicates potential liquidity issues, which could constrain the company's ability to fund operations and growth initiatives without external financing.

Earnings Decline

Declining earnings per share can affect investor confidence and limit the company's ability to reinvest in business expansion, impacting long-term competitiveness.

UOB-Kay Hian Holdings Limited Business Overview & Revenue Model

Company Description

UOB-Kay Hian Holdings Limited, an investment holding company, provides stockbroking, futures broking, structured lending, investment trading, margin financing, and nominee and research services in Singapore, Hong Kong, Thailand, Malaysia, and internationally. It offers corporate finance services ranging from financial advisory and investment banking to underwriting and placement services in primary and secondary listings; and acts as financers and arrangers for principals acquiring strategic stakes in regional listed companies. The company also provides investor education and margin trading services; structured financing, such as privatization financing and credit restructuring services; and wealth management products and services, including asset allocation strategies, discretionary portfolio management, asset manager platforms, and external investment products. In addition, it offers various products and services, such as equities, bonds, contracts for difference, daily leverage certificates, exchange traded funds, futures and options, leveraged foreign exchange, advisory, and unit trust. The company serves institutions, large corporations, high-net-worth individuals, and retail investors. The company was formerly known as Kay Hian Holdings Ltd. and changed its name to UOB-Kay Hian Holdings Limited in October 2000. UOB-Kay Hian Holdings Limited was incorporated in 2000 and is headquartered in Singapore.

How the Company Makes Money

UOB-Kay Hian generates revenue through multiple key streams. Primarily, the company earns money from brokerage commissions on stock and securities trades conducted by its clients. This includes both retail and institutional trading activities. Additionally, UOB-Kay Hian offers wealth management services, charging fees for portfolio management and advisory services. The company also engages in corporate finance activities, earning fees from underwriting, mergers and acquisitions, and other advisory services. Significant partnerships with financial institutions and market access providers enhance its service offerings, while proprietary research and investment insights attract clients and contribute to its earnings.

UOB-Kay Hian Holdings Limited Financial Statement Overview

Summary

UOB-Kay Hian Holdings Limited demonstrates strong profitability with a high net profit margin and improved leverage. However, it faces challenges with declining revenue and negative operating cash flow, indicating potential liquidity issues. The company needs to address these issues to sustain its financial health.

Income Statement

UOB-Kay Hian Holdings Limited shows strong profitability with a high net profit margin of 42.09% for 2024. However, the revenue growth rate is negative at -12.15%, indicating a decline in revenue compared to the previous year. The EBIT and EBITDA margins are robust, suggesting efficient cost management. Overall, the income statement reflects solid profitability but highlights concerns about declining revenue.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.39 in 2024, showing a reduction in leverage compared to previous years. Return on equity is healthy at 10.59%, indicating effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

The cash flow statement reveals challenges with negative operating cash flow in 2024, indicating potential liquidity issues. Despite this, the free cash flow to net income ratio is positive at 1.05, suggesting that the company is generating sufficient free cash flow relative to its net income. The significant growth in free cash flow from the previous year is a positive sign, but the negative operating cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.91M	532.70M	454.47M	444.28M	614.90M	558.12M
Gross Profit	654.91M	241.15M	218.36M	223.19M	303.99M	284.31M
EBITDA	0.00	304.95M	257.38M	178.24M	230.10M	254.18M
Net Income	209.54M	224.22M	170.36M	101.88M	151.88M	159.41M
Balance Sheet
Total Assets	5.68B	4.59B	3.99B	4.32B	4.52B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.22B	1.34B	1.53B	986.70M	631.57M
Total Debt	1.52B	832.58M	846.28M	1.40B	1.46B	1.50B
Total Liabilities	3.56B	2.46B	2.08B	2.52B	2.76B	2.99B
Stockholders Equity	2.11B	2.12B	1.89B	1.78B	1.74B	1.64B
Cash Flow
Free Cash Flow	-132.03K	-96.67M	379.94M	795.70M	63.73M	-248.37M
Operating Cash Flow	5.75M	-91.92M	384.09M	798.36M	68.83M	-242.82M
Investing Cash Flow	-5.35M	-4.08M	-3.25M	-1.89M	-2.68M	-5.88M
Financing Cash Flow	669.82M	-65.52M	-577.61M	-101.96M	-28.82M	311.34M

UOB-Kay Hian Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U10, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.56, above the 50-day MA of 2.51, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:U10.

UOB-Kay Hian Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S41	71 Outperform	S$1.19B	14.20	4.02%	4.87%	-10.51%	-15.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TCU	66 Neutral	S$297.20M	27.56	20.94%	3.13%	5.17%	-2.09%
U10	66 Neutral	S$2.55B	11.56	10.50%	4.63%	7.87%	-4.03%
YF8	64 Neutral	S$1.31B	3.92	8.61%	3.76%	-9.47%	131.72%
HKB	58 Neutral	S$1.44B	22.13	―	―	―	―

UOB-Kay Hian Holdings Limited Corporate Events

UOB-Kay Hian to Voluntarily Delist Thai Subsidiary from SET

UOB-Kay Hian Holdings Limited has announced its intention to voluntarily delist its subsidiary, UOB Kay Hian Securities (Thailand) Public Company Limited, from the Stock Exchange of Thailand. The delisting will be executed through a tender offer to acquire all outstanding shares at THB 8.17 per share. This move comes as trading of UOBKH Thailand’s securities has been suspended due to non-compliance with the exchange’s free float requirements. The delisting is contingent upon shareholder and regulatory approvals, and the absence of any material adverse changes.

The most recent analyst rating on (SG:U10) stock is a Hold with a S$2.50 price target. To see the full list of analyst forecasts on UOB-Kay Hian Holdings Limited stock, see the SG:U10 Stock Forecast page.