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UOB-Kay Hian Holdings Limited (SG:U10)
SGX:U10

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

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UOB-Kay Hian Holdings Limited

(SGX:U10)

Rating:76Outperform
Price Target:
S$2.50
▲(16.82%Upside)
UOB-Kay Hian Holdings Limited benefits from a strong technical outlook with positive momentum and appears undervalued given its attractive P/E ratio and high dividend yield. However, challenges in revenue growth and cash flow generation are notable risks. Overall, the stock offers a balanced opportunity with potential for growth, contingent on addressing the financial performance concerns.

UOB-Kay Hian Holdings Limited (U10) vs. iShares MSCI Singapore ETF (EWS)

UOB-Kay Hian Holdings Limited Business Overview & Revenue Model

Company DescriptionUOB-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 MoneyUOB-Kay Hian Holdings Limited generates revenue primarily through brokerage commissions from securities trading activities. The company facilitates transactions for clients in equities, fixed income, and derivatives across various exchanges, earning a commission on each trade executed. Additionally, the firm derives income from its wealth management services, where it charges fees for advisory, portfolio management, and financial planning services. Another significant revenue stream is corporate finance, where the company earns fees from underwriting, advisory, and structuring services for mergers, acquisitions, and capital market transactions. UOB-Kay Hian also benefits from interest income on margin financing extended to clients for trading purposes. The company fosters strategic partnerships and leverages its affiliation with the United Overseas Bank (UOB) group to enhance its service offerings and expand its market reach.

UOB-Kay Hian Holdings Limited Financial Statement Overview

Summary
UOB-Kay Hian Holdings Limited exhibits strong profitability metrics and a solid balance sheet, but declining revenue growth and cash flow challenges may pose risks. The company's operational efficiency is commendable, yet attention is needed to reverse the declining revenue trend and improve cash flow generation.
Income Statement
75
Positive
The company shows a strong gross profit margin and net profit margin, indicating effective cost control. However, the revenue growth rate is negative, suggesting a decline in sales compared to previous periods. The EBIT and EBITDA margins are solid, reflecting operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio is moderate, suggesting a balanced use of debt and equity financing. Return on equity is healthy, demonstrating effective use of shareholder funds. The equity ratio is strong, indicating a solid financial position with a substantial portion of assets financed by equity.
Cash Flow
60
Neutral
The free cash flow growth rate is negative, pointing to challenges in generating cash flows. Operating cash flow to net income ratio is concerning, highlighting potential issues in converting profits into cash. However, the company maintains a positive free cash flow to net income ratio, indicating some ability to generate cash relative to profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue581.07M532.70M539.01M448.35M619.97M560.56M
Gross Profit540.62M241.15M302.90M227.27M309.06M279.88M
EBITDA388.99M304.95M253.70M178.18M230.14M254.31M
Net Income214.95M224.22M170.36M101.88M151.88M159.41M
Balance Sheet
Total Assets4.62B4.59B3.99B4.32B4.52B4.64B
Cash, Cash Equivalents and Short-Term Investments776.00M1.22B1.04B1.53B986.70M631.57M
Total Debt801.25M832.58M846.28M1.40B1.46B1.50B
Total Liabilities2.62B2.46B2.08B2.52B2.76B2.99B
Stockholders Equity1.98B2.12B1.89B1.78B1.74B1.64B
Cash Flow
Free Cash Flow86.58M-96.50M379.94M795.70M63.73M-248.37M
Operating Cash Flow91.17M-91.75M384.09M798.36M68.83M-242.82M
Investing Cash Flow-4.02M-4.25M-3.25M-1.89M-2.68M-5.88M
Financing Cash Flow-335.75M-65.52M-577.61M-101.96M-28.82M311.34M

UOB-Kay Hian Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.14
Price Trends
50DMA
1.86
Positive
100DMA
1.77
Positive
200DMA
1.65
Positive
Market Momentum
MACD
0.08
Negative
RSI
77.46
Negative
STOCH
79.79
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 2.14 is above the 20-day moving average (MA) of 2.01, above the 50-day MA of 1.86, and above the 200-day MA of 1.65, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 77.46 is Negative, neither overbought nor oversold. The STOCH value of 79.79 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SGU10
76
Outperform
€2.09B8.6811.09%7.18%16.93%31.82%
67
Neutral
$16.89B11.809.79%3.77%12.07%-8.35%
SGHKB
S$1.44B22.83
SGS35
S$276.63M7.618.10%5.56%
SGS41
72
Outperform
S$1.16B11.164.99%5.79%3.85%11.43%
SGTCU
S$311.03M27.6622.19%2.96%
SGYF8
63
Neutral
S$3.06B10.167.71%3.85%-19.54%58.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:U10
UOB-Kay Hian Holdings Limited
2.14
0.87
68.50%
SG:HKB
AMTD IDEA Group Class A
3.60
-7.70
-68.14%
SG:S35
Sing Investments & Finance Limited
1.17
0.23
24.47%
SG:S41
Hong Leong Finance Limited
2.60
0.30
13.04%
SG:TCU
Credit Bureau Asia Limited
1.34
0.49
57.65%
SG:YF8
Yangzijiang Financial Holding Ltd.
0.87
0.54
163.64%

UOB-Kay Hian Holdings Limited Corporate Events

UOB-Kay Hian Fined for AML/CFT Breaches, Strengthens Compliance Measures
Jul 4, 2025

UOB-Kay Hian Private Limited has been fined S$2,850,000 by the Monetary Authority of Singapore for breaches of Anti-Money Laundering and Countering the Financing of Terrorism requirements that occurred between 2019 and 2023. The company has since strengthened its policies and controls to prevent future breaches and ensure full regulatory compliance, with the impact of the penalty not expected to materially affect the group’s financial results.

UOB-Kay Hian Subsidiary Undergoes Name Change
Jul 1, 2025

UOB-Kay Hian Holdings Limited has announced a name change for its wholly-owned subsidiary, UOB Kay Hian Securities (M) Sdn. Bhd., which will now be known as UOB Kay Hian (M) Sdn. Bhd., effective from June 17, 2025. This change reflects a strategic decision by the company and may impact its branding and market presence in the region.

UOB-Kay Hian Announces Board and Audit Committee Restructuring
Jul 1, 2025

UOB-Kay Hian Holdings Limited has announced the appointment of Ms. Chan Lay Hoon as an Independent Director and a member of the Audit Committee, effective from July 1, 2025. This strategic move is part of a broader reconstitution of the Board and Audit Committee, aimed at enhancing governance and oversight within the company. The restructured Board will continue to be led by Mr. Wee Ee Chao as Chairman and Managing Director, with the Audit Committee chaired by Mr. Kuah Boon Wee. These changes are expected to strengthen the company’s leadership and operational oversight, potentially impacting its market positioning positively.

UOB-Kay Hian Holdings Limited Conducts Annual General Meeting with Shareholder Engagement
May 22, 2025

UOB-Kay Hian Holdings Limited held its Annual General Meeting (AGM) on April 25, 2025, chaired by Mr. Wee Ee Chao. The meeting included a question and answer session where shareholders and SGX RegCo posed inquiries, which were addressed by the company’s directors and management. The responses to these questions were made available on SGXNET and the company’s website, indicating a transparent approach to shareholder engagement.

UOB-Kay Hian Expands with New Indonesian Subsidiary
May 19, 2025

UOB-Kay Hian Holdings Limited has announced the incorporation of a new subsidiary, PT UOB Kay Hian Futures, in Jakarta, Indonesia. This new entity will operate as a futures brokerage, expanding the company’s footprint in the Indonesian market. The establishment of PT UOB Kay Hian Futures is expected to enhance UOB-Kay Hian’s operational capabilities and market positioning in the region, potentially benefiting stakeholders through increased market access and service offerings.

UOB-Kay Hian Holdings Limited Announces Board Reconstitution
May 2, 2025

UOB-Kay Hian Holdings Limited announced the appointment of Hui Yat Yan, Henry as an Independent Director effective from May 2, 2025, as part of a broader reconstitution of its Board and Board Committees. This strategic move is expected to enhance the company’s governance and oversight capabilities, potentially strengthening its position in the financial services industry and impacting stakeholders positively.

UOB-Kay Hian Addresses SGX Queries on 2024 Annual Report
Apr 22, 2025

UOB-Kay Hian Holdings Limited addressed queries from the Singapore Exchange regarding its 2024 Annual Report. The company clarified that directors Andrew Suckling and Edmund Leong Kok Mun were involved in past disciplinary actions by MAS and SGX RegCo, but necessary remedial actions have been completed. The Nominating Committee recommended their re-election, citing their significant contributions. Additionally, the company explained its compliance with Listing Rule 210(5)(d)(iv) concerning Mr. Suckling’s tenure as a director.

UOB-Kay Hian Prepares for AGM with Financial Updates
Apr 20, 2025

UOB-Kay Hian Holdings Limited has addressed shareholder inquiries ahead of its Annual General Meeting scheduled for April 25, 2025. The company reported an increase in outstanding contracts receivable and trade and other receivables, attributed to increased business activities. Concerns were raised about the substantial rise in receivables and outstanding contracts payable, with management expected to provide further insights into the financial outlook for the upcoming year.

UOB-Kay Hian Completes Voluntary Liquidation of Subsidiary
Apr 9, 2025

UOB-Kay Hian Holdings Limited has announced the completion of the members’ voluntary liquidation of its subsidiary, UOB Kay Hian Trading Pte Ltd, effective from April 3, 2025. The liquidation of this subsidiary will not materially affect the company’s net tangible assets or earnings per share for the financial year ending December 31, 2024, indicating a minimal impact on the company’s overall financial health and operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025