Eastern Star Real Estate PCL

Eastern Star Real Estate PCL maintains a conservative capital structure with a debt-to-equity ratio of 0.28, significantly below the industry median of 0.65, indicating a strong equity position relative to its liabilities. The company's liquidity position is mixed, with a current ratio of 4.54, suggesting robust short-term liquidity, but negative net cash after subtracting total debt, which raises concerns about its ability to meet long-term obligations.

Profitability metrics reveal a weak performance, with a return on equity (ROE) of 0.0012 and a return on assets (ROA) of 0.0008, both well below the industry median of 0.03 for ROE and 0.01 for ROA. This underperformance is exacerbated by a low gross profit margin of 29.08% and an operating margin of 0.26%, which are below the industry averages of 35% and 5%, respectively.

Geographically, the company's revenue is concentrated in Thailand, with no disclosed international operations. Segment-wise, the company operates as a single business unit, with no material diversification across property types or markets. This lack of diversification increases exposure to local economic and regulatory risks.

Growth prospects appear muted, with the company's revenue declining from 403.7 million THB in the most recent quarter to 335.3 million THB in the current quarter, a 16.9% drop. The outlook for the next fiscal year is similarly cautious, with no significant revenue growth expected.

Risk factors include a medium liquidity risk due to negative net cash and a low dilution risk, as the company has not issued new shares recently. The risk assessment also flags the company's negative net cash position as a key concern, which could limit its ability to fund operations or capital expenditures without external financing.

Recent events include a negative earnings surprise, with an actual EPS of -0.03 THB, far below analyst expectations. This, combined with the decline in revenue, suggests operational challenges that may persist in the near term.

Revenue grew 46.7% year-over-year, demonstrating strong top-line expansion momentum for the real estate developer.

Operating income surged 350.7% year-over-year, indicating a significant improvement in core operational profitability.

The debt-to-equity ratio of 0.28 is well below the cohort median of 0.52, suggesting a conservative capital structure.

Net income CAGR of 12.0% over four years reflects consistent long-term earnings growth trajectory.

Dilution risk is assessed as low, providing relative stability for existing shareholders' equity ownership.

Credit risk is flagged as high, signaling potential difficulties in meeting debt obligations or financing costs.

Cash conversion is in the bottom quartile of the cohort, indicating poor ability to turn earnings into cash.

Revenue THB 2.02B, +7,4% YoY; Operating income +247,5% YoY.

• ▍Revenue THB 2.02B, +7,4% YoY
• ▍Operating income +247,5% YoY
• ▍Net income +270,6% YoY
• ▍Free cash flow −360,7% YoY
• ▍Net margin 6.3%

Revenue THB 1.25B; Operating income -THB 26.8M.

• ▍Revenue THB 1.25B
• ▍Operating income -THB 26.8M
• ▍Net margin 1.7%