Wang-Zheng Bhd

Wang-Zheng Bhd maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.32, indicating a low reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 3.08, suggesting it has sufficient short-term assets to cover its liabilities, but with a negative net cash position after subtracting total debt. Free cash flow is negative at -1.111 million MYR, reflecting capital expenditure outpacing operating cash flow.

Profitability metrics show a return on equity of 0.71% and a return on assets of 0.52%, both below the industry median for Paper Products, indicating subpar performance relative to peers. Gross profit of 7.359 million MYR and operating income of 1.818 million MYR suggest limited margin expansion, with net income of 1.466 million MYR representing a thin return on total assets of 282.925 million MYR.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and sector-specific risks. No material revenue concentration by geography is reported, but the absence of segmental or geographic breakdowns limits visibility into operational resilience.

Wang-Zheng Bhd's growth trajectory is constrained, with no disclosed revenue growth over the past fiscal year. Analyst estimates for the most recent period show actual revenue of 238.36 million MYR, significantly lower than the reported 69.473 million MYR, suggesting potential discrepancies in reporting or a shift in business focus. The company's capital expenditure of -3.704 million MYR indicates a net outflow, which may reflect asset retirements or a strategic reduction in investment.

Risk factors include a medium liquidity risk and a low dilution risk, with no immediate pressure from share issuance or convertible debt. The company's free cash flow remains negative, and its operating cash flow of 9.721 million MYR is insufficient to cover capital expenditures. No dilution sources are identified in the latest filings, and the probability of near-term dilution is low.

Recent events include the disclosure of a negative free cash flow and a reduction in capital expenditures. No material events or regulatory actions have been reported in the latest filings, and the company's risk profile remains stable.

Free cash flow improved by 35.0% year-over-year to negative MYR 8.9 million, indicating a narrowing cash burn rate.

Cash conversion ratio of 6.63 significantly exceeds the paper products cohort median of 1.58, suggesting superior operational efficiency.

Debt-to-equity ratio of 0.32 is below the cohort median of 0.46, reflecting a relatively conservative capital structure.

Revenue maintained a 7.7% compound annual growth rate over the four-year period ending in fiscal year 2009.

Long-term debt decreased to MYR 46.8 million in fiscal year 2009, down from MYR 67.1 million in the prior year.

The company faces high credit risk and medium liquidity risk, posing significant financial stability concerns for investors.

Revenue MYR 77.7M, −2,4% YoY; Operating income −255,1% YoY.

• ▍Revenue MYR 77.7M, −2,4% YoY
• ▍Operating income −255,1% YoY
• ▍Net income −590,9% YoY
• ▍Free cash flow −92,3% YoY
• ▍Net margin -3.5%

Revenue MYR 79.4M, +6,8% YoY; Operating income −72,2% YoY.

• ▍Revenue MYR 79.4M, +6,8% YoY
• ▍Operating income −72,2% YoY
• ▍Net income −1 855,9% YoY
• ▍Free cash flow −706,5% YoY
• ▍Net margin -12.8%

Revenue MYR 80.0M, +15,2% YoY; Operating income −52,5% YoY.

• ▍Revenue MYR 80.0M, +15,2% YoY
• ▍Operating income −52,5% YoY
• ▍Net income −65,8% YoY
• ▍Free cash flow +167,6% YoY
• ▍Net margin 0.6%

Revenue MYR 85.4M; Operating income -MYR 1.0M.

• ▍Revenue MYR 85.4M
• ▍Operating income -MYR 1.0M
• ▍Net margin -1.8%

Revenue MYR 79.6M; Operating income MYR 1.2M.

• ▍Revenue MYR 79.6M
• ▍Operating income MYR 1.2M
• ▍Net margin 0.7%

Revenue MYR 74.3M; Operating income MYR 923.0k.

• ▍Revenue MYR 74.3M
• ▍Operating income MYR 923.0k
• ▍Net margin 0.8%

Revenue MYR 69.5M; Operating income MYR 1.8M.

• ▍Revenue MYR 69.5M
• ▍Operating income MYR 1.8M
• ▍Net margin 2.1%

Revenue MYR 302.9M, −1,9% YoY; Operating income −205,4% YoY.

• ▍Revenue MYR 302.9M, −1,9% YoY
• ▍Operating income −205,4% YoY
• ▍Net income −816,8% YoY
• ▍Free cash flow +35,0% YoY
• ▍Net margin -2.5%

Revenue MYR 308.8M, +9,3% YoY; Operating income −47,3% YoY.

• ▍Revenue MYR 308.8M, +9,3% YoY
• ▍Operating income −47,3% YoY
• ▍Net income −84,1% YoY
• ▍Free cash flow −710,0% YoY
• ▍Net margin 0.3%

Revenue MYR 282.4M, +5,3% YoY; Operating income −4,2% YoY.

• ▍Revenue MYR 282.4M, +5,3% YoY
• ▍Operating income −4,2% YoY
• ▍Net income +3,6% YoY
• ▍Free cash flow −26,6% YoY
• ▍Net margin 2.4%

Revenue MYR 268.3M, +19,1% YoY; Operating income −14,7% YoY.

• ▍Revenue MYR 268.3M, +19,1% YoY
• ▍Operating income −14,7% YoY
• ▍Net income −15,7% YoY
• ▍Free cash flow −42,9% YoY
• ▍Net margin 2.4%

Revenue MYR 225.3M; Operating income MYR 13.4M.

• ▍Revenue MYR 225.3M
• ▍Operating income MYR 13.4M
• ▍Net margin 3.4%