Iskandar Waterfront City Bhd

Iskandar Waterfront City Bhd maintains a conservative capital structure with a debt-to-equity ratio of 0.15, significantly below the median for its industry, indicating a low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 3.32, suggesting it can cover short-term obligations but may face constraints in highly volatile market conditions. Free cash flow is minimal at 520,000 MYR, and capital expenditures are negative at -52,000 MYR, indicating a lack of active reinvestment in the business.

Profitability metrics are weak, with a return on equity of 0.07% and a return on assets of 0.03%, both far below the industry median for real estate development and operations. This suggests the company is underperforming in generating returns for shareholders and asset utilization. Gross profit of 5,005,000 MYR and operating income of 855,000 MYR reflect a narrow margin structure, which is a concern in a capital-intensive industry.

The company's revenue is concentrated in a single geographic segment, the Iskandar Johor region, with no disclosed diversification into other markets. This geographic concentration increases exposure to local economic conditions and regulatory changes, which could impact revenue stability. No material segment breakdown is available, limiting visibility into the performance of different business lines.

Growth prospects are muted, with revenue of 38,210,000 MYR in the latest period and no disclosed growth trajectory in the outlook. Analyst estimates for revenue and earnings are below the company's reported figures, suggesting a lack of consensus on future performance. The absence of a clear growth strategy and low reinvestment in capital expenditures further limits the company's ability to expand its asset base.

Risk factors include a medium liquidity risk due to the company's current ratio and a negative net cash position after subtracting total debt. While dilution risk is currently low, the company's minimal free cash flow and lack of reinvestment could lead to future financing needs, potentially increasing dilution pressure. No recent events or filings have been disclosed that would materially impact the company's operations or financial position.

The company's recent financial performance and lack of growth initiatives suggest a defensive posture. With no significant capital expenditures and weak returns, the company appears to be maintaining operations rather than pursuing expansion. This strategy may be appropriate in a stable market but could leave the company vulnerable to competitive pressures or economic downturns.

The company maintains a low debt-to-equity ratio of 0.15, significantly below the cohort median of 0.52, indicating a conservative capital structure.

Cash conversion stands at 48.0, ranking as best-in-class compared to the cohort median of 0.29, suggesting superior cash generation efficiency.

Free cash flow improved by 19.0% year-over-year to -17.97 million MYR, showing a positive trend in cash flow management.

Operating income increased by 23.1% year-over-year to -12.4 million MYR, demonstrating an improvement in core operational performance.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or securing favorable financing terms.

The company continues to report negative net income of -18.3 million MYR, failing to achieve profitability in the latest fiscal year.

Revenue MYR 24.2M, +239,6% YoY; Operating income +89,6% YoY.

• ▍Revenue MYR 24.2M, +239,6% YoY
• ▍Operating income +89,6% YoY
• ▍Net income +61,0% YoY
• ▍Free cash flow +61,4% YoY
• ▍Net margin -30.7%

Revenue MYR 4.3M, −76,2% YoY; Operating income −129,6% YoY.

• ▍Revenue MYR 4.3M, −76,2% YoY
• ▍Operating income −129,6% YoY
• ▍Net income −151,5% YoY
• ▍Free cash flow −161,8% YoY
• ▍Net margin -103.1%

Revenue MYR 7.6M, −80,1% YoY; Operating income −171,6% YoY.

• ▍Revenue MYR 7.6M, −80,1% YoY
• ▍Operating income −171,6% YoY
• ▍Net income −388,4% YoY
• ▍Free cash flow −25,4% YoY
• ▍Net margin -36.2%

Revenue MYR 7.3M, −80,9% YoY; Operating income −499,8% YoY.

• ▍Revenue MYR 7.3M, −80,9% YoY
• ▍Operating income −499,8% YoY
• ▍Net income −834,1% YoY
• ▍Free cash flow −806,0% YoY
• ▍Net margin -49.9%

Revenue MYR 7.1M; Operating income -MYR 18.5M.

• ▍Revenue MYR 7.1M
• ▍Operating income -MYR 18.5M
• ▍Net margin -267.3%

Revenue MYR 18.2M; Operating income -MYR 2.0M.

• ▍Revenue MYR 18.2M
• ▍Operating income -MYR 2.0M
• ▍Net margin -9.8%

Revenue MYR 38.2M; Operating income MYR 3.5M.

• ▍Revenue MYR 38.2M
• ▍Operating income MYR 3.5M
• ▍Net margin 2.5%

Revenue MYR 38.2M; Operating income MYR 855.0k.

• ▍Revenue MYR 38.2M
• ▍Operating income MYR 855.0k
• ▍Net margin 1.3%

Revenue MYR 43.4M, −57,3% YoY; Operating income +23,1% YoY.

• ▍Revenue MYR 43.4M, −57,3% YoY
• ▍Operating income +23,1% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow +19,0% YoY
• ▍Net margin -42.1%

Revenue MYR 101.8M, −2,8% YoY; Operating income −1 468,2% YoY.

• ▍Revenue MYR 101.8M, −2,8% YoY
• ▍Operating income −1 468,2% YoY
• ▍Net income −207,2% YoY
• ▍Free cash flow −269,2% YoY
• ▍Net margin -19.0%

Revenue MYR 104.7M, +13,4% YoY; Operating income +203,7% YoY.

• ▍Revenue MYR 104.7M, +13,4% YoY
• ▍Operating income +203,7% YoY
• ▍Net income +80,4% YoY
• ▍Free cash flow +81,1% YoY
• ▍Net margin -6.0%

Revenue MYR 92.4M, +413,1% YoY; Operating income +89,3% YoY.

• ▍Revenue MYR 92.4M, +413,1% YoY
• ▍Operating income +89,3% YoY
• ▍Net income −15,3% YoY
• ▍Free cash flow −15,6% YoY
• ▍Net margin -34.9%