Sin Heng Chan (Malaya) Bhd

Sin Heng Chan (Malaya) Bhd maintains a debt-to-equity ratio of 0.65, indicating a moderate reliance on debt financing, while its current ratio of 1.54 suggests reasonable short-term liquidity. However, the company's free cash flow is negative at -1.595 million MYR, and its operating cash flow is only 3.395 million MYR, signaling potential liquidity constraints.

In terms of profitability, the company's return on equity (ROE) is 0.89%, and its return on assets (ROA) is 0.52%, both of which are relatively low. These figures suggest that the company is not generating strong returns relative to its equity and asset base. The operating income of 1.418 million MYR and net income of 2.408 million MYR indicate modest profitability, but the company's gross profit margin of 24.22% (3.186 million MYR on 13.153 million MYR revenue) is a key performance indicator that should be monitored.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification could expose the company to higher operational and market risks, particularly in the event of a downturn in the fishing and farming sector.

Looking ahead, the company's revenue is expected to remain relatively flat, with no significant growth anticipated in the next fiscal year. The capital expenditure of -6.009 million MYR indicates a reduction in investment, which may affect long-term growth prospects. The company's recent financial performance, including a negative EPS of -0.03 MYR, further underscores the challenges it faces in maintaining profitability.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. However, the key flag of negative net cash after subtracting total debt highlights a potential liquidity issue that could impact the company's ability to meet short-term obligations. The dilution potential is low, and no significant adjustments have been applied to the valuation metrics, suggesting that the company's capital structure is relatively stable.

Recent events, including the latest financial filings and transcripts, indicate that the company is facing operational and financial challenges. The negative EPS and the reduction in capital expenditure suggest that the company is taking a conservative approach to managing its resources in the current economic environment.

Cash conversion ratio of 1.41 outperforms the 0.89 cohort median, suggesting effective working capital management.

Debt-to-equity ratio of 0.65 is below the 0.35 cohort median, reflecting a conservative leverage profile.

Dilution risk is assessed as low, providing stability for existing shareholders' equity ownership.

Net income CAGR of -39.7% over four years signals severe and sustained earnings deterioration.

Credit risk is flagged as high, posing significant potential for financial distress or default.

Revenue MYR 11.9M, −9,5% YoY; Operating income −42,0% YoY.

• ▍Revenue MYR 11.9M, −9,5% YoY
• ▍Operating income −42,0% YoY
• ▍Net income −10,7% YoY
• ▍Free cash flow −27,1% YoY
• ▍Net margin 18.1%

Revenue MYR 14.3M; Operating income MYR 1.3M.

• ▍Revenue MYR 14.3M
• ▍Operating income MYR 1.3M
• ▍Net margin 13.3%

Revenue MYR 12.1M; Operating income MYR 152.0k.

• ▍Revenue MYR 12.1M
• ▍Operating income MYR 152.0k
• ▍Net margin 17.6%

Revenue MYR 13.3M; Operating income MYR 1.2M.

• ▍Revenue MYR 13.3M
• ▍Operating income MYR 1.2M
• ▍Net margin 17.2%

Revenue MYR 13.2M; Operating income MYR 1.4M.

• ▍Revenue MYR 13.2M
• ▍Operating income MYR 1.4M
• ▍Net margin 18.3%

Revenue MYR 52.9M, +21,8% YoY; Operating income +389,1% YoY.

• ▍Revenue MYR 52.9M, +21,8% YoY
• ▍Operating income +389,1% YoY
• ▍Net income +22,6% YoY
• ▍Free cash flow −11,6% YoY
• ▍Net margin 16.5%

Revenue MYR 43.4M, −20,2% YoY; Operating income −91,6% YoY.

• ▍Revenue MYR 43.4M, −20,2% YoY
• ▍Operating income −91,6% YoY
• ▍Net income −52,4% YoY
• ▍Free cash flow −193,3% YoY
• ▍Net margin 16.4%

Revenue MYR 54.4M, +10,1% YoY; Operating income −84,5% YoY.

• ▍Revenue MYR 54.4M, +10,1% YoY
• ▍Operating income −84,5% YoY
• ▍Net income −76,5% YoY
• ▍Free cash flow −84,2% YoY
• ▍Net margin 27.5%

Revenue MYR 49.4M; Operating income MYR 64.4M.

• ▍Revenue MYR 49.4M
• ▍Operating income MYR 64.4M
• ▍Net margin 129.0%