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

• Market Cap: S$1.86B
• Dividend Yield: 6.69%
• Average Volume (3M): 598.43K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.37
• Revenue Growth: 16.93%
• EPS Growth: 31.82%
• Country: SG
• Employees: 3,123
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): 0.24
• Shares Outstanding: 945,056,900
• 10 Day Avg. Volume: 818,670
• 30 Day Avg. Volume: 598,431
• PEG Ratio: -0.36
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: S$2.00 ▲(4.17%Upside)

UOB-Kay Hian Holdings Limited scores well due to its strong valuation, highlighted by a low P/E ratio and high dividend yield. The stock also demonstrates positive technical indicators, suggesting bullish momentum. However, challenges with revenue growth and cash flow generation temper the overall score.

UOB-Kay Hian Holdings Limited Business Overview & Revenue Model

Company Description

UOB-Kay Hian Holdings Limited (U10) is a leading securities brokerage and financial services group headquartered in Singapore. The company operates primarily in the financial services sector, offering a comprehensive range of services including securities trading, investment banking, wealth management, research, and corporate finance advisory. With a strong presence in the Asia-Pacific region, UOB-Kay Hian serves a diverse client base comprising retail investors, corporate clients, and institutional investors.

How the Company Makes Money

UOB-Kay Hian Holdings Limited generates revenue through various financial services. The primary revenue streams include brokerage fees from securities trading, where the company earns commissions on trades executed for clients. Additionally, UOB-Kay Hian derives income from investment banking activities, which involve advising on mergers and acquisitions, underwriting services, and capital raising for corporate clients. Wealth management services also contribute to revenue through management fees charged on assets under management. Furthermore, the company benefits from interest income generated from margin financing provided to clients. Strategic partnerships with major financial institutions and a strong market presence in the Asia-Pacific region enhance UOB-Kay Hian's ability to attract clients and grow its earnings.

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

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
581.07M	532.70M	539.01M	448.35M	619.97M	560.56M
	Gross Profit
540.62M	241.15M	302.90M	227.27M	309.06M	279.88M
	EBIT
376.72M	137.36M	359.15M	160.74M	211.05M	235.01M
	EBITDA
388.99M	304.95M	253.70M	178.18M	230.14M	254.31M
	Net Income Common Stockholders
214.95M	224.22M	170.36M	101.88M	151.88M	159.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
776.00M	1.22B	1.04B	1.53B	986.70M	631.57M
	Total Assets
4.62B	4.59B	3.99B	4.32B	4.52B	4.64B
	Total Debt
801.25M	832.58M	846.28M	1.40B	1.46B	1.50B
	Net Debt
-776.00M	-85.69M	-190.18M	159.08M	915.30M	989.38M
	Total Liabilities
2.62B	2.46B	2.08B	2.52B	2.76B	2.99B
	Stockholders Equity
1.98B	2.12B	1.89B	1.78B	1.74B	1.64B
Cash Flow		Free Cash Flow
86.58M	-96.50M	379.94M	795.70M	63.73M	-248.37M
	Operating Cash Flow
91.17M	-91.75M	384.09M	798.36M	68.83M	-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	-28.82M	311.34M

UOB-Kay Hian Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1.92 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.73, and above the 200-day MA of 1.59, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 73.45 is Negative, neither overbought nor oversold. The STOCH value of 81.88 is Negative, 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
U10	73 Outperform	S$1.86B	7.86	11.09%	6.69%	16.93%	31.82%
YF8	73 Outperform	S$2.52B	8.31	7.71%	4.76%	-19.54%	58.03%
S41	72 Outperform	S$1.13B	10.86	4.99%	5.95%	3.85%	11.43%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

UOB-Kay Hian Holdings Limited Corporate Events

UOB-Kay Hian Holdings Limited Conducts Annual General Meeting with Shareholder Engagement

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

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

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

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

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

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.