drpeterlim4.16"We are very excited about entering China through this consortium,  and tapping into the potential of this mammoth financial services market. This JV will provide companies with a convenient and efficient solution to invest in productive and logistic equipment by facilitating the process for users financing or purchasing equipment."

-- Dato’ Sri Dr. Lim Yong Guan, Executive Chairman and CEO of MoneyMax

(NextInsight file photo)

MoneyMax Financial Services has entered into a joint venture agreement with SGX-listed AP Oil International, 重庆宗申动力 机械股份有限公司 (“Zongshen”) and 重庆保税港区开发管理集团有限公司 (“Free Trade Port Co”) to provide financial leasing services in Chongqing, China.

The consortium is made up of three listed companies and a government-linked company.

MoneyMax, a SGX-listed pawnbroking chain with a presence in Singapore and Malaysia, will make its maiden foray into the Chinese market through a 12.5% equity stake in the JV.

AP Oil International, Zongshen and Free Trade Port Co will take the remaining 12.5%, 70.0% and 5.0% stake in the JV, respectively.

Stock price  15.4c
52-week range 11.5c-18c
Market cap S$54.5m
PE ratio 11.5x
Dividend yield 3.3%
YTD return 4.3%
Source: Bloomberg

(For AP Oil, the participation seems to be a diversification away from its core businesses of manufacturing and supplying lubricants and specialty chemical products. AP Oil sees it as an extension of its existing business relationship with Zongshen). 

The JV, with an initial registered capital of RMB200 million (with about RMB25 million, or S$5.15 million, coming from MoneyMax), will service various fast-growing industries in China.

China is the second largest financial services leasing market in the world but has a relatively low penetration rate of 3.1% of leasing activities, compared to nearly 20.0% in more developed markets.

Healthy development of the industry is expected to be accelerated by efforts by the Chinese government which aims to build a world-class industry with a group of leading enterprises and an effective regulation system by 20204 .

Commenting on the JV, Dato’ Sri Dr. Lim Yong Guan, Executive Chairman and CEO of MoneyMax, said: “This is in line with our Company’s strategy as we remain on the lookout for more overseas opportunities to expand our service offerings and innovative ways to provide financial services.”

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.140-0.510
Avi-Tech Electronics0.265-
Best World1.630-0.070
Broadway Ind0.087-
China Sunsine0.3900.005
Delfi Limited0.9650.010
Food Empire1.4400.010
Fortress Minerals0.2800.010
Geo Energy Res0.330-0.005
GSS Energy0.027-
Hong Leong Finance2.480-
Hongkong Land (USD)3.3800.100
ISDN Holdings0.320-0.010
IX Biopharma0.0450.004
Jiutian Chemical0.025-
KSH Holdings0.250-
Leader Env0.051-0.001
Medtecs Intl0.132-0.001
Nordic Group0.335-0.005
Oxley Holdings0.091-
REX International0.1330.010
Sinostar PEC0.140-0.002
Southern Alliance Mining0.600-
Straco Corp.0.5300.015
Sunpower Group0.2300.005
The Trendlines0.0850.002
Totm Technologies0.023-0.001
Uni-Asia Group0.840-0.010
Wilmar Intl3.320-0.020
Yangzijiang Shipbldg1.7500.010

We have 2338 guests and 4 members online

rss_2 NextInsight - Latest News