Hextar Retail Bhd

Capital Structure and Liquidity Hextar Retail Bhd has a debt-to-equity ratio of 0.41, indicating a relatively conservative capital structure. However, the company's liquidity position is assessed as medium, with a current ratio of 1.99. Despite holding cash and equivalents of MYR 27.26 million, the company's operating cash flow is negative at MYR -16.61 million, and free cash flow is also negative at MYR -18.60 million. The company's net cash position is negative after subtracting total debt, raising concerns about its short-term liquidity. ### Profitability and Returns The company's profitability is weak, with a return on equity (ROE) of -2.43% and a return on assets (ROA) of -1.61%. These figures are below the industry median for Forest & Wood Products, which typically sees positive ROE and ROA. The operating income is negative at MYR -2.03 million, and the net income is also negative at MYR -4.57 million, indicating operational challenges. ### Segments and Geographic Exposure Hextar Retail Bhd operates in three segments: Wooden Picture Frame and Mouldings, Other Timber Products, and Property Holding. The company's primary revenue is derived from the export of wooden picture frames and moldings to North America, Australia, Japan, and Europe. The geographic concentration in these regions exposes the company to international trade risks and currency fluctuations. ### Growth Trajectory The company's revenue for the latest period is MYR 79.72 million, but there is no indication of significant growth in the near term. The operating cash flow and free cash flow are negative, suggesting that the company is not generating sufficient cash to support growth initiatives. The capital expenditure of MYR -24.20 million indicates ongoing investment, but the negative cash flows suggest that these investments are not yet yielding returns. ### Risk Factors The company faces several risk factors, including liquidity concerns due to negative operating and free cash flows. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's ESG controversies score is 100.0, indicating significant environmental, social, and governance issues. The governance pillar score is 62.8, and the social pillar score is 26.4, both of which are below industry benchmarks. ### Recent Events Recent financial filings show a decline in profitability, with a net loss of MYR 4.57 million. The company's last actual EPS was 0.02 MYR, and the last actual revenue was MYR 47.41 million. These figures suggest a challenging operating environment and potential operational inefficiencies.