PLB Engineering Bhd

PLB Engineering Bhd has a debt-to-equity ratio of 1.87, indicating a relatively high level of leverage, which is above the typical median for the construction and engineering industry. The company's liquidity position is assessed as medium, with a current ratio of 0.75, suggesting that it may face challenges in meeting short-term obligations without additional financing.

The company's profitability is weak, with a negative return on equity of -0.64% and a return on assets of -0.16%. These figures are below the industry's preferred metrics and indicate that the company is not generating returns that exceed its cost of capital. The net loss of 610,000 MYR further underscores the company's financial underperformance.

PLB Engineering Bhd's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration increases the company's exposure to sector-specific risks and limits its ability to offset losses in one area with gains in another.

The company's growth trajectory is uncertain, with a net loss in the most recent reporting period. While the company reported revenue of 13,985,000 MYR, this is lower than the analyst estimate of 170,368,000 MYR, suggesting potential issues with revenue recognition or project execution. The capital expenditure of -1,088,000 MYR indicates a reduction in investment, which may affect long-term growth prospects.

The company faces several risk factors, including a high debt load and a negative net cash position after subtracting total debt. The risk assessment indicates a low probability of dilution, but the company's financial position may require additional financing in the near term, which could lead to equity dilution. The company's liquidity risk is moderate, but its credit risk is elevated due to the high debt-to-equity ratio.

Recent events, including the company's financial performance and capital structure, suggest that PLB Engineering Bhd is under financial pressure. The company's operating cash flow of 52,680,000 MYR is positive, but it is not sufficient to cover the long-term debt of 178,714,000 MYR. The company's free cash flow of 1,416,000 MYR is also low, indicating limited financial flexibility.

Net income surged 149.1% year-over-year to MYR 5.3 million, demonstrating a strong recent profitability turnaround.

Long-term debt decreased substantially from MYR 274.8 million in 2004 to MYR 60.8 million in 2008.

The company achieved positive net income of MYR 5.3 million in FY2008, reversing previous years' losses.

Debt-to-equity ratio of 1.87 is in the bottom quartile, far exceeding the 0.29 cohort median.

Net margin of -4.4% ranks in the bottom quartile, underperforming the 3.8% cohort median significantly.

Return on equity of -0.64% falls in the bottom quartile, lagging the 4.75% cohort median.

The company faces high credit risk and medium liquidity risk according to current risk flag assessments.

Revenue MYR 60.6M, +134,2% YoY.

• ▍Revenue MYR 60.6M, +134,2% YoY

Revenue MYR 15.6M, −22,4% YoY; Operating income −35,1% YoY.

• ▍Revenue MYR 15.6M, −22,4% YoY
• ▍Operating income −35,1% YoY
• ▍Net income +67,8% YoY
• ▍Free cash flow +51,1% YoY
• ▍Net margin -3.7%

Revenue MYR 21.1M, −30,9% YoY; Operating income −75,7% YoY.

• ▍Revenue MYR 21.1M, −30,9% YoY
• ▍Operating income −75,7% YoY
• ▍Net income +174,9% YoY
• ▍Net margin 48.1%

Revenue MYR 22.3M, +59,7% YoY; Operating income −52,6% YoY.

• ▍Revenue MYR 22.3M, +59,7% YoY
• ▍Operating income −52,6% YoY
• ▍Net income −416,7% YoY
• ▍Free cash flow −165,0% YoY
• ▍Net margin -14.1%

Revenue MYR 25.9M; Operating income MYR 73.0k.

• ▍Revenue MYR 25.9M
• ▍Operating income MYR 73.0k
• ▍Net margin 0.4%

Revenue MYR 20.1M; Operating income MYR 753.0k.

• ▍Revenue MYR 20.1M
• ▍Operating income MYR 753.0k
• ▍Net margin -9.0%

Revenue MYR 30.5M; Operating income MYR 6.0M.

• ▍Revenue MYR 30.5M
• ▍Operating income MYR 6.0M
• ▍Net margin -44.3%

Revenue MYR 14.0M; Operating income MYR 3.7M.

• ▍Revenue MYR 14.0M
• ▍Operating income MYR 3.7M
• ▍Net margin -4.4%

Revenue MYR 89.4M, −26,0% YoY; Operating income −82,9% YoY.

• ▍Revenue MYR 89.4M, −26,0% YoY
• ▍Operating income −82,9% YoY
• ▍Net income +149,1% YoY
• ▍Free cash flow −140,2% YoY
• ▍Net margin 5.9%

Revenue MYR 120.8M, +169,7% YoY; Operating income +13 408,3% YoY.

• ▍Revenue MYR 120.8M, +169,7% YoY
• ▍Operating income +13 408,3% YoY
• ▍Net income +59,1% YoY
• ▍Free cash flow +144,4% YoY
• ▍Net margin -8.9%

Revenue MYR 44.8M, −73,8% YoY; Operating income −100,5% YoY.

• ▍Revenue MYR 44.8M, −73,8% YoY
• ▍Operating income −100,5% YoY
• ▍Net income −117,2% YoY
• ▍Free cash flow −165,3% YoY
• ▍Net margin -58.6%

Revenue MYR 170.7M, −1,0% YoY; Operating income +53,9% YoY.

• ▍Revenue MYR 170.7M, −1,0% YoY
• ▍Operating income +53,9% YoY
• ▍Net income −701,9% YoY
• ▍Free cash flow +270,3% YoY
• ▍Net margin -7.1%