Prestar Resources Bhd

Prestar Resources Bhd has a debt-to-equity ratio of 0.25, indicating a relatively conservative capital structure with limited leverage. The company's current ratio of 2.09 suggests it has sufficient short-term assets to cover its liabilities, though its operating cash flow is negative at -2.61 million MYR, and free cash flow is nearly flat at -11,000 MYR. This suggests the company is not generating strong cash from operations and may be reliant on external financing or asset sales to fund operations.

In terms of profitability, the company's return on equity (ROE) is 0.99%, and return on assets (ROA) is 0.74%, both of which are below the typical thresholds for strong performance in the mining industry. These metrics indicate that the company is not efficiently utilizing its equity or assets to generate returns. Gross profit of 14.63 million MYR and operating income of 4.89 million MYR suggest some level of operational efficiency, but the net income of 4.32 million MYR is relatively modest given the company's asset base.

The company's revenue is concentrated in a single business segment, as disclosed in its financials, with no geographic diversification provided in the available data. This lack of segment or geographic diversification could expose the company to higher operational and market risks, particularly in the volatile mining sector.

Looking at the growth trajectory, the company's revenue of 131.83 million MYR in the latest period does not provide a clear indication of future growth without additional historical data. The absence of a detailed outlook for the current or next fiscal year makes it difficult to assess the company's growth potential. The capital expenditure of -898,000 MYR suggests the company is not investing heavily in new projects or expansion, which could limit its ability to grow in the long term.

The risk assessment indicates a medium liquidity risk, with the company's net cash position being negative after accounting for total debt. This could constrain the company's ability to meet short-term obligations without additional financing. The dilution risk is assessed as low, and no significant dilution sources are identified in the available data. However, the company's reliance on external financing to fund operations could increase the risk of future dilution if it needs to raise additional capital.

Recent events, including the latest financial filing, show a last actual EPS of 0.04 MYR, which is a key indicator of the company's earnings performance. No recent transcripts or filings beyond the financial snapshot are available to provide further insight into the company's strategic direction or operational developments.

Net income surged 71.2% year-over-year to MYR 20.98 million, demonstrating strong recent profitability recovery.

Free cash flow jumped 248.2% to MYR 15.03 million, indicating significantly improved cash generation capabilities.

Debt-to-equity ratio of 0.25 is lower than the cohort median of 0.34, suggesting a conservative leverage profile.

The company faces high credit risk, which could impair financial stability and increase borrowing costs significantly.

Cash conversion of -0.60% is well below the cohort median of 0.74%, highlighting weak cash generation quality.

Revenue MYR 109.8M, −16,8% YoY; Operating income −67,0% YoY.

• ▍Revenue MYR 109.8M, −16,8% YoY
• ▍Operating income −67,0% YoY
• ▍Net income −85,5% YoY
• ▍Free cash flow −9 500,0% YoY
• ▍Net margin 0.6%

Revenue MYR 117.3M; Operating income MYR 5.9M.

• ▍Revenue MYR 117.3M
• ▍Operating income MYR 5.9M
• ▍Net margin 3.0%

Revenue MYR 109.1M; Operating income -MYR 741.0k.

• ▍Revenue MYR 109.1M
• ▍Operating income -MYR 741.0k
• ▍Net margin 0.9%

Revenue MYR 117.9M; Operating income MYR 3.0M.

• ▍Revenue MYR 117.9M
• ▍Operating income MYR 3.0M
• ▍Net margin 2.9%

Revenue MYR 131.8M; Operating income MYR 4.9M.

• ▍Revenue MYR 131.8M
• ▍Operating income MYR 4.9M
• ▍Net margin 3.3%

Revenue MYR 476.0M, −9,8% YoY; Operating income −49,5% YoY.

• ▍Revenue MYR 476.0M, −9,8% YoY
• ▍Operating income −49,5% YoY
• ▍Net income −52,7% YoY
• ▍Free cash flow −79,2% YoY
• ▍Net margin 2.6%

Revenue MYR 527.9M, −13,0% YoY; Operating income +438,9% YoY.

• ▍Revenue MYR 527.9M, −13,0% YoY
• ▍Operating income +438,9% YoY
• ▍Net income +70,5% YoY
• ▍Free cash flow +3 360,4% YoY
• ▍Net margin 4.9%

Revenue MYR 607.0M, +12,7% YoY; Operating income −95,0% YoY.

• ▍Revenue MYR 607.0M, +12,7% YoY
• ▍Operating income −95,0% YoY
• ▍Net income −84,0% YoY
• ▍Free cash flow −100,7% YoY
• ▍Net margin 2.5%

Revenue MYR 538.7M; Operating income MYR 95.1M.

• ▍Revenue MYR 538.7M
• ▍Operating income MYR 95.1M
• ▍Net margin 17.7%