Camaroe Bhd

Camaroe Bhd’s capital structure shows a debt-to-equity ratio of 0.49, indicating moderate leverage, while its current ratio of 6.33 suggests strong short-term liquidity. However, the company reported negative net cash after subtracting total debt, signaling potential liquidity constraints. Free cash flow is negative at MYR -4.1 million, driven by capital expenditures of MYR -3.5 million, which may reflect ongoing farm or processing facility maintenance. Profitability metrics are weak, with a return on equity of -5.79% and return on assets of -3.63%, both significantly below the industry median for aquaculture firms. Operating income is negative at MYR -1.75 million, and net income is MYR -2.2 million, indicating operational inefficiencies or cost overruns. Gross profit of MYR 4.7 million is insufficient to cover operating expenses, highlighting a need for cost optimization or pricing adjustments. The company’s revenue is concentrated across three segments: Live prawns, Frozen black tiger prawns, and Others. Live prawns and frozen products are its primary revenue drivers, with geographic exposure limited to Malaysia’s coastal regions (Selangor, Pahang, Terengganu). Export dependence and brand-name customization for customers suggest vulnerability to global demand shifts and pricing pressures. Growth trajectory appears muted, with no disclosed revenue growth in the latest period. The company operates 138 ponds across five farms and a processing facility, but capital expenditures have not translated into improved operating margins. Future growth may depend on expanding production capacity or diversifying into higher-margin segments. Risk factors include liquidity constraints due to negative net cash and weak operating cash flow of MYR 15,000. Dilution risk is low, with no near-term pressure from share issuance, and shares outstanding remain unchanged between basic and diluted counts. However, the company’s negative net income and operating losses may limit its ability to service debt or fund expansion. Recent filings and transcripts are not disclosed in the input data, but the financial snapshot indicates a need for operational restructuring or cost rationalization to improve profitability.