White Horse Bhd

White Horse Bhd's capital structure is characterized by a low debt-to-equity ratio of 0.16, indicating a conservative leverage position relative to its equity base. The company's liquidity is assessed as medium, with a current ratio of 3.45, suggesting it has sufficient short-term assets to cover its liabilities, though not in excess. Despite this, the company reported negative operating cash flow of -8,142,000 MYR, which raises concerns about its ability to fund operations from core business activities.

Profitability metrics for White Horse Bhd are weak, with a return on equity of -0.54% and a return on assets of -0.43%, both of which are negative and indicate that the company is not generating returns for its shareholders or effectively utilizing its assets. These figures are below the industry median for the Construction Supplies & Fixtures sector, which typically sees positive returns on equity and assets.

The company's revenue is concentrated in the construction supplies and fixtures segment, with no disclosed geographic diversification. This concentration increases exposure to regional economic fluctuations and construction market cycles. The lack of geographic diversification is a notable risk, as the company's performance is closely tied to the health of the local construction industry.

White Horse Bhd's growth trajectory is uncertain, with a reported revenue of 106,536,000 MYR and a net loss of 3,171,000 MYR. Analyst estimates suggest a significant drop in revenue compared to the last actual revenue of 410,043,000 MYR, indicating a potential downturn in the company's performance. The company's capital expenditure of -100,000 MYR suggests minimal investment in growth initiatives, which may hinder its ability to recover and expand.

The company faces several risk factors, including a negative net cash position after subtracting total debt, which could limit its financial flexibility. The risk of dilution is assessed as low, with no significant changes in shares outstanding between basic and diluted shares. However, the company's negative operating income and net income highlight operational challenges that could impact its long-term sustainability.

Recent events, such as the reported financial losses and negative cash flow, suggest that the company is experiencing operational difficulties. These issues may be exacerbated by broader economic conditions affecting the construction industry, which is a key driver of the company's revenue.

White Horse generated positive free cash flow of MYR 1.35 million in FY2021, demonstrating operational cash generation despite net losses.

The company's debt-to-equity ratio of 0.16 is below the cohort median of 0.29, indicating a conservative leverage position relative to peers.

Operating income improved significantly by 361.3% year-over-year in FY2021, signaling a potential turnaround in core operational profitability.

Cash conversion of 2.57 places White Horse in the top quartile of its construction supplies cohort, highlighting efficient working capital management.

Long-term debt decreased to MYR 68.3 million in FY2021 from MYR 89.4 million in FY2020, reducing financial obligations and interest burden.

White Horse reported a net loss of MYR 7.3 million in FY2021, continuing a trend of unprofitability over the last three fiscal years.

The company faces high credit risk according to risk flags, suggesting potential difficulties in meeting financial obligations or securing financing.

Return on equity was negative at -0.54%, underperforming the cohort median of 2.74% and destroying shareholder value over the period.

Revenue MYR 101.0M, −15,9% YoY; Operating income +208,8% YoY.

• ▍Revenue MYR 101.0M, −15,9% YoY
• ▍Operating income +208,8% YoY
• ▍Net income +263,6% YoY
• ▍Free cash flow +228,3% YoY
• ▍Net margin 4.2%

Revenue MYR 98.2M, −9,8% YoY; Operating income +52,9% YoY.

• ▍Revenue MYR 98.2M, −9,8% YoY
• ▍Operating income +52,9% YoY
• ▍Net income +36,8% YoY
• ▍Free cash flow +429,0% YoY
• ▍Net margin -2.3%

Revenue MYR 91.6M, −11,0% YoY; Operating income +1 514,3% YoY.

• ▍Revenue MYR 91.6M, −11,0% YoY
• ▍Operating income +1 514,3% YoY
• ▍Net income +53,9% YoY
• ▍Free cash flow +61,4% YoY
• ▍Net margin -0.8%

Revenue MYR 89.7M, −15,8% YoY; Operating income −351,3% YoY.

• ▍Revenue MYR 89.7M, −15,8% YoY
• ▍Operating income −351,3% YoY
• ▍Net income −171,1% YoY
• ▍Free cash flow −519,1% YoY
• ▍Net margin -9.6%

Revenue MYR 120.2M; Operating income MYR 3.4M.

• ▍Revenue MYR 120.2M
• ▍Operating income MYR 3.4M
• ▍Net margin -2.2%

Revenue MYR 108.8M; Operating income -MYR 2.6M.

• ▍Revenue MYR 108.8M
• ▍Operating income -MYR 2.6M
• ▍Net margin -3.3%

Revenue MYR 103.0M; Operating income -MYR 28.0k.

• ▍Revenue MYR 103.0M
• ▍Operating income -MYR 28.0k
• ▍Net margin -1.4%

Revenue MYR 106.5M; Operating income -MYR 1.6M.

• ▍Revenue MYR 106.5M
• ▍Operating income -MYR 1.6M
• ▍Net margin -3.0%

Revenue MYR 380.5M, −13,2% YoY; Operating income +361,3% YoY.

• ▍Revenue MYR 380.5M, −13,2% YoY
• ▍Operating income +361,3% YoY
• ▍Net income +32,5% YoY
• ▍Free cash flow −30,3% YoY
• ▍Net margin -1.9%

Revenue MYR 438.5M, +4,0% YoY; Operating income +92,9% YoY.

• ▍Revenue MYR 438.5M, +4,0% YoY
• ▍Operating income +92,9% YoY
• ▍Net income +34,5% YoY
• ▍Free cash flow +12 225,0% YoY
• ▍Net margin -2.5%

Revenue MYR 421.7M, +1,9% YoY; Operating income −237,7% YoY.

• ▍Revenue MYR 421.7M, +1,9% YoY
• ▍Operating income −237,7% YoY
• ▍Net income −2 193,7% YoY
• ▍Free cash flow −100,3% YoY
• ▍Net margin -3.9%

Revenue MYR 413.6M, +3,5% YoY; Operating income −78,2% YoY.

• ▍Revenue MYR 413.6M, +3,5% YoY
• ▍Operating income −78,2% YoY
• ▍Net income −95,3% YoY
• ▍Free cash flow −87,9% YoY
• ▍Net margin 0.2%