Edelteq Holdings Bhd
Edelteq’s capital structure shows a debt-to-equity ratio of 1.13, indicating moderate leverage, while its liquidity position is characterized by a current ratio of 1.17 and cash and equivalents of MYR 18.1 million. However, the company’s operating cash flow is negative at MYR -70.3 million, and net cash is negative after subtracting total debt, signaling potential liquidity constraints. Profitability metrics show a return on equity (ROE) of 16.24% and a return on assets (ROA) of 4.32%, both above the typical thresholds for the semiconductor industry, which often prioritizes ROE over ROA due to high capital intensity. Gross profit of MYR 17.1 million and operating income of MYR 18.2 million suggest healthy margins, though the company’s net income of MYR 13.5 million is relatively modest compared to revenue of MYR 367.1 million. Geographic and segment exposure is not explicitly detailed in the available data, but the company’s revenue concentration is likely tied to its primary markets in electronics and industrial equipment. No major geographic or segment breakdown is provided in the financial snapshot. Growth trajectory appears stable, with no specific outlook provided for the current or next fiscal year. However, capital expenditure of MYR -1.5 million suggests minimal investment in new capacity, which may limit future growth unless offset by organic demand. Risk factors include medium liquidity risk due to negative operating cash flow and a negative net cash position after debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. The company’s risk profile is further complicated by the capital-intensive nature of the semiconductor industry, which is sensitive to macroeconomic and technological shifts. Recent events include a single "Buy" recommendation from analysts, with no strong buy or hold ratings, and a mean price target of MYR 0.45. No recent filings or transcripts are available to provide additional context on strategic or operational developments.
Business. Edelteq Holdings Bhd designs and manufactures semiconductor components, primarily serving the electronics and industrial equipment markets.
Classification. Edelteq is classified in the Technology sector under Semiconductors, with a confidence level of 0.92 based on verified market data.
- Edelteq maintains a moderate debt load with a debt-to-equity ratio of 1.13, but liquidity is constrained by negative operating cash flow.
- ROE of 16.24% and ROA of 4.32% indicate strong profitability relative to industry norms.
- Analysts have issued one "Buy" recommendation, with a mean price target of MYR 0.45, but no strong buy or hold ratings.
- Minimal capital expenditure suggests limited near-term growth from new investments.
- No major geographic or segment breakdown is available, limiting visibility into revenue concentration.
- Net cash is negative after subtracting total debt.