are you sure the business is doing good? it will NOT make a loss if business is doing good.
Btw, i am really amazed how fast the massive cash pile being 'transformed' from CASH into "Trade receivables, and Other receivables, deposits & prepayments", just like in a blink of eyes.
Last QR Trade receivables 17,908,107 Other receivables, deposits & prepayments 18,686,685 Short term deposits with licensed banks 82,982,437 Cash and bank balances 7,796,129
Current QR Trade receivables 34,648,328 Other receivables, deposits & prepayments 77,012,927 Short term deposits with licensed banks 11,430,474 Cash and bank balances 3,121,376
Surprising isn't it? hw 3 months can did to a company's fundamental.
And i am equally curious on the reason the external auditor resigned, the chairman resign from audit committee and an executive director resign.
in view of the booming receivables and depleting cash at such extreme level. you better watch the column in their AR is there any receivables past due but not impaired in the coming future.
it just doesn't make sense to spend multi million in any business with booming receivables just to earn a RM27k for 3 months.
The Group has achieved substantial improvement in revenue and gross profits compare to previous year corresponding quarter and period for the financial period under review. The improvement in revenue and operation results were mainly due to construction contributions from Porto De Melaka Phase 1 project in current year, reversal of provision for impairment loss on debtors of RM0.5 million (2017: RM1.7 million provision) and the increase in other income. As a result, the Group has reduced its loss before tax to RM1.3 million (2017: RM5.3 million).
The Group’s achieved higher revenue compare to the immediate preceding quarter mainly due to higher billings from its construction division. However, the Group’s profit before tax has reduced from immediate preceding quarter of RM0.74 million to loss before tax of RM2 million in the current quarter. The reduction is mainly due fair value adjustment for share options granted amounted to RM1.3 million and no reversal of impairment loss on debtor in the current quarter (2018 1Qtr : RM0.5 mil)
Prospects Despite challenging economic conditions, the outlook of construction sector in Malaysia should remain strong for year 2017 with on going stream of mega projects to be launched by Government and private sector. The Group is confident that it will benefit from some of these proposed projects. At present, the Group has successfully secured construction order book of RM311 million and has recently received the letter of intent from KL Northgate for the Paragon@KL Northgate 18-acre mixed development project in Selayang with an estimated contract value of RM1.2 billion. The Group is currently working with MCC Overseas (M) Sdn Bhd (“MCC”) to jointly undertake the construction of the Project. The Group will continue to build the competitiveness in timber services and construction business while remaining focused on operational efficiency and productivity so that satisfactory results are achieved in the current financial year.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Omar Mamat
34 posts
Posted by Omar Mamat > 2017-11-20 13:41 | Report Abuse
Down, down, down....