HCK Capital Group Bhd

HCK Capital Group Bhd maintains a debt-to-equity ratio of 0.84, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized as medium, with a current ratio of 1.34, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow for the period was 5.17 million MYR, a modest amount relative to operating cash flow of 190.1 million MYR, indicating some reinvestment or operational constraints.

Profitability metrics show a return on equity (ROE) of 1.65% and a return on assets (ROA) of 0.37%, both below the typical thresholds for strong performance in the real estate sector. These figures suggest the company is not generating significant returns relative to its equity or asset base. Gross profit of 24.23 million MYR and operating income of 14.11 million MYR reflect a relatively narrow margin structure, which may be typical for the industry but leaves little room for volatility.

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 segmental or geographic breakdown limits the ability to assess exposure to specific markets or product lines. The absence of detailed segmental reporting also makes it difficult to evaluate the performance of individual business units or regions.

Looking ahead, the company's growth trajectory appears constrained. Revenue for the period was 214.02 million MYR, with no clear indication of significant growth in the near term. Analyst estimates for the most recent period show a revenue of 90.37 million MYR, which is lower than the reported figure, suggesting potential volatility or seasonal factors. The company's capital expenditure was negative at -1.91 million MYR, indicating a reduction in investment in physical assets, which may signal a conservative approach to growth.

Risk factors include a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could pose challenges in maintaining liquidity under stress scenarios. However, the low dilution risk suggests that the company is not currently issuing shares at a rate that would significantly dilute existing shareholders. The absence of recent filings or transcripts limits the ability to assess any new strategic initiatives or operational changes.

Recent financial data does not include any new events or filings that would indicate a shift in strategy or significant operational changes. The company's financial performance remains consistent with its historical trends, with no major deviations in revenue or profitability.

Cash conversion of 31.86% ranks best-in-class among 932 real estate peers, indicating superior cash generation efficiency.

Free cash flow surged 105.1% year-over-year, demonstrating a significant improvement in liquidity generation capabilities.

Net income grew 416.8% year-over-year, highlighting a substantial recovery in profitability from the prior period.

Debt-to-equity ratio of 0.84 is below the cohort median of 0.52, suggesting a relatively conservative leverage position.

Capex to revenue ratio of -0.0089 is above the median, implying lower capital intensity relative to peers.

High credit risk flag indicates significant potential for financial distress or default issues within the company.

Revenue declined at a 4.2% CAGR over four years, signaling a long-term contraction in top-line growth.

Revenue MYR 50.5M, −45,8% YoY; Operating income +80,1% YoY.

• ▍Revenue MYR 50.5M, −45,8% YoY
• ▍Operating income +80,1% YoY
• ▍Net income +177,3% YoY
• ▍Free cash flow +249,3% YoY
• ▍Net margin 19.7%

Revenue MYR 32.8M, −65,7% YoY; Operating income −126,2% YoY.

• ▍Revenue MYR 32.8M, −65,7% YoY
• ▍Operating income −126,2% YoY
• ▍Net income −183,2% YoY
• ▍Free cash flow +115,9% YoY
• ▍Net margin -13.1%

Revenue MYR 24.2M, −88,7% YoY; Operating income −86,0% YoY.

• ▍Revenue MYR 24.2M, −88,7% YoY
• ▍Operating income −86,0% YoY
• ▍Net income −127,4% YoY
• ▍Free cash flow −322,6% YoY
• ▍Net margin -6.7%

Revenue MYR 93.2M; Operating income MYR 7.8M.

• ▍Revenue MYR 93.2M
• ▍Operating income MYR 7.8M
• ▍Net margin 3.9%

Revenue MYR 90.5M; Operating income MYR 3.4M.

• ▍Revenue MYR 90.5M
• ▍Operating income MYR 3.4M
• ▍Net margin 6.7%

Revenue MYR 95.7M; Operating income MYR 8.5M.

• ▍Revenue MYR 95.7M
• ▍Operating income MYR 8.5M
• ▍Net margin 5.4%

Revenue MYR 214.0M; Operating income MYR 14.1M.

• ▍Revenue MYR 214.0M
• ▍Operating income MYR 14.1M
• ▍Net margin 2.8%

Revenue MYR 146.3M, −70,3% YoY; Operating income +0,8% YoY.

• ▍Revenue MYR 146.3M, −70,3% YoY
• ▍Operating income +0,8% YoY
• ▍Net income +6,5% YoY
• ▍Free cash flow +196,1% YoY
• ▍Net margin 15.1%

Revenue MYR 493.4M, +126,1% YoY; Operating income −34,7% YoY.

• ▍Revenue MYR 493.4M, +126,1% YoY
• ▍Operating income −34,7% YoY
• ▍Net income −16,9% YoY
• ▍Free cash flow −229,2% YoY
• ▍Net margin 4.2%

Revenue MYR 218.2M, +18,9% YoY; Operating income +83,1% YoY.

• ▍Revenue MYR 218.2M, +18,9% YoY
• ▍Operating income +83,1% YoY
• ▍Net income +128,0% YoY
• ▍Free cash flow +6 296,2% YoY
• ▍Net margin 11.4%