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

• Market Cap: €2.09B
• Dividend Yield: 7.18%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.44
• Revenue Growth: 16.93%
• EPS Growth: 31.82%
• Country: SG
• Employees: 3,123
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): 0.24
• Shares Outstanding: 984,188,230
• 10 Day Avg. Volume: 2,307,583
• 30 Day Avg. Volume: 1,224,491
• PEG Ratio: -0.15
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.10
• 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: 76 Outperform
• 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 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 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

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
EBITDA	388.99M	304.95M	253.70M	178.18M	230.14M	254.31M
Net Income	214.95M	224.22M	170.36M	101.88M	151.88M	159.41M
Balance Sheet
Total Assets	4.62B	4.59B	3.99B	4.32B	4.52B	4.64B
Cash, Cash Equivalents and Short-Term Investments	776.00M	1.22B	1.04B	1.53B	986.70M	631.57M
Total Debt	801.25M	832.58M	846.28M	1.40B	1.46B	1.50B
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: 2.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
U10	76 Outperform	€2.09B	8.68	11.09%	7.18%	16.93%	31.82%
Sector *	67 Neutral	$16.89B	11.80	9.79%	3.77%	12.07%	-8.35%
HKB		S$1.44B	22.83		―	―	―
S35		S$276.63M	7.61	8.10%	5.56%	―	―
S41	72 Outperform	S$1.16B	11.16	4.99%	5.79%	3.85%	11.43%
TCU		S$311.03M	27.66	22.19%	2.96%	―	―
YF8	63 Neutral	S$3.06B	10.16	7.71%	3.85%	-19.54%	58.03%

UOB-Kay Hian Holdings Limited Corporate Events

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

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

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

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

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.