Three-A Resources Bhd

Three-A Resources Bhd maintains a strong liquidity position, with a current ratio of 7.47, indicating a high ability to meet short-term obligations. The company's liquidity FPT (free cash flow to total liabilities) is not explicitly provided, but the free cash flow of 14,677,000 MYR supports its liquidity profile. The company's debt-to-equity ratio is 0.01, suggesting a conservative capital structure with minimal reliance on debt financing.

In terms of profitability, the company's return on equity (ROE) is 2.74%, and return on assets (ROA) is 2.43%. These figures are below the typical thresholds for high-performing food processing firms, indicating that the company may not be generating returns as efficiently as its peers. The operating margin, calculated as operating income of 14,745,000 MYR divided by revenue of 148,757,000 MYR, is approximately 9.91%, which is in line with industry norms.

The company's revenue is primarily concentrated in its domestic market, with no significant international operations disclosed. The financial data does not provide a breakdown of revenue by segment or geography, making it difficult to assess the extent of geographic or product diversification. However, the company's exposure to the domestic market may pose risks in the event of economic downturns or regulatory changes.

The company's growth trajectory appears modest, with no significant revenue growth reported in the latest financial data. The capital expenditure of -1,445,000 MYR suggests a reduction in investment in new projects or facilities, which could indicate a focus on cost optimization rather than expansion. The company's net income of 12,680,000 MYR and operating income of 14,745,000 MYR suggest stable but not robust earnings performance.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could affect its ability to fund operations without external financing. However, the low dilution risk suggests that the company is not likely to issue additional shares in the near term, preserving shareholder value. The company's conservative debt levels and strong equity position mitigate some of the financial risks associated with liquidity and solvency.

Recent events, such as analyst estimates and financial filings, indicate that the company's revenue is in line with expectations. The last actual revenue reported was 436,166,000 MYR, which is lower than the revenue of 148,757,000 MYR in the latest financial snapshot, suggesting a possible discrepancy or a different reporting period. Investors should monitor the company's financial disclosures for any material changes in revenue or earnings performance.

Three-A Resources generated MYR 46.5 million net income in FY-4, representing a 10.1% year-over-year increase from FY0.

With a debt-to-equity ratio of 0.01, Three-A Resources maintains leverage well below the 0.32 cohort median.

Free cash flow grew 18.5% year-over-year to MYR 24.9 million in FY-4, demonstrating strong cash generation.

Net income compounded at a 7.3% CAGR over four years, indicating consistent profitability growth despite revenue declines.

The company faces medium liquidity risk, which could constrain operational flexibility or dividend sustainability in tight markets.

Cash conversion of 0.9 is below the 0.98 cohort median, suggesting less efficient translation of earnings to cash.

Revenue MYR 124.4M, −1,6% YoY; Operating income −5,1% YoY.

• ▍Revenue MYR 124.4M, −1,6% YoY
• ▍Operating income −5,1% YoY
• ▍Net income −0,9% YoY
• ▍Free cash flow −45,9% YoY
• ▍Net margin 10.7%

Revenue MYR 121.3M, −14,6% YoY; Operating income +80,2% YoY.

• ▍Revenue MYR 121.3M, −14,6% YoY
• ▍Operating income +80,2% YoY
• ▍Net income +98,9% YoY
• ▍Free cash flow +521,7% YoY
• ▍Net margin 8.6%

Revenue MYR 131.4M, −6,1% YoY; Operating income −28,3% YoY.

• ▍Revenue MYR 131.4M, −6,1% YoY
• ▍Operating income −28,3% YoY
• ▍Net income −29,1% YoY
• ▍Free cash flow −61,6% YoY
• ▍Net margin 6.5%

Revenue MYR 133.9M, −10,0% YoY; Operating income −9,4% YoY.

• ▍Revenue MYR 133.9M, −10,0% YoY
• ▍Operating income −9,4% YoY
• ▍Net income −21,4% YoY
• ▍Free cash flow −31,1% YoY
• ▍Net margin 7.4%

Revenue MYR 126.4M; Operating income MYR 18.4M.

• ▍Revenue MYR 126.4M
• ▍Operating income MYR 18.4M
• ▍Net margin 10.7%

Revenue MYR 142.1M; Operating income MYR 7.6M.

• ▍Revenue MYR 142.1M
• ▍Operating income MYR 7.6M
• ▍Net margin 3.7%

Revenue MYR 139.9M; Operating income MYR 16.4M.

• ▍Revenue MYR 139.9M
• ▍Operating income MYR 16.4M
• ▍Net margin 8.6%

Revenue MYR 148.8M; Operating income MYR 14.7M.

• ▍Revenue MYR 148.8M
• ▍Operating income MYR 14.7M
• ▍Net margin 8.5%

Revenue MYR 511.0M, −8,3% YoY; Operating income −1,5% YoY.

• ▍Revenue MYR 511.0M, −8,3% YoY
• ▍Operating income −1,5% YoY
• ▍Net income −2,7% YoY
• ▍Free cash flow −34,1% YoY
• ▍Net margin 8.3%

Revenue MYR 557.1M, −7,7% YoY; Operating income −1,3% YoY.

• ▍Revenue MYR 557.1M, −7,7% YoY
• ▍Operating income −1,3% YoY
• ▍Net income −3,8% YoY
• ▍Free cash flow +19,3% YoY
• ▍Net margin 7.8%

Revenue MYR 603.9M, −8,3% YoY; Operating income +20,0% YoY.

• ▍Revenue MYR 603.9M, −8,3% YoY
• ▍Operating income +20,0% YoY
• ▍Net income +28,7% YoY
• ▍Free cash flow +156,1% YoY
• ▍Net margin 7.5%

Revenue MYR 658.7M, +27,8% YoY; Operating income −23,3% YoY.

• ▍Revenue MYR 658.7M, +27,8% YoY
• ▍Operating income −23,3% YoY
• ▍Net income −24,6% YoY
• ▍Free cash flow −58,0% YoY
• ▍Net margin 5.3%