Amcorp Global Limited Financial Analysis: Net Profit Decline of 171.3%
Business Description
Amcorp Global Limited, incorporated in Singapore, is primarily engaged in investment holding and real estate development. The company operates in the property division segment, involving the development and sale of properties. Its geographic footprint spans Singapore and Malaysia.
Industry Position
Amcorp Global operates within the competitive real estate development industry. Specific competitors are not mentioned in the report, but the company faces industry-standard challenges such as market fluctuations and regulatory changes. The company’s market share details are not provided, highlighting a need for better competitive analysis.
Revenue Streams
The company derives its revenue mainly from property sales. For the period ended 30 September 2024, revenue amounted to \$2.7 million, a significant decrease from \$28.1 million in the previous period, reflecting a decline in sales of development properties in both Singapore and Malaysia.
Financial Analysis
Income Statement
The income statement highlights a considerable decline in revenue, from \$28.1 million to \$2.7 million, resulting in a gross loss of \$0.4 million compared to a gross profit of \$4.3 million in the previous period. The loss before tax is reported at \$3.4 million, up from a loss of \$1.2 million. The net loss attributable to equity holders is \$3.4 million, a 171.3% increase from the prior period.
Balance Sheet
As of 30 September 2024, total assets stand at \$158.9 million, a decrease from \$171.3 million as of 31 March 2024. The company’s liabilities are \$95.5 million, down from \$106.2 million, indicating some debt repayment. Equity attributable to shareholders is \$62.6 million, down from \$64.2 million, reflecting the period’s losses.
Cash Flow Statement
The company experienced net cash outflows of \$11.3 million for the period, with cash and cash equivalents at \$16.4 million by period end. Cash outflows were mainly due to operating activities (\$1.1 million), investing activities (\$4.9 million), and financing activities (\$5.4 million).
Dividend
No dividend has been declared or recommended for the period ended 30 September 2024.
Key Findings
- Revenue Decline: Significant drop in revenue by 90.4%, leading to a gross loss.
- Increased Losses: Net loss of \$3.4 million, an increase of 171.3% from the previous period.
- Decreased Equity: Shareholder equity decreased to \$62.6 million.
- Cash Outflows: Net cash outflows of \$11.3 million mainly due to operational, investment, and financing activities.
- Debt Reduction: Some improvements seen in the reduction of liabilities.
Special Activities
The company acquired a 100% interest in Amcorp Baker Street Pte Ltd for S\$5.4 million to enhance its investment portfolio. However, no specific measures to improve profitability were highlighted.
Recommendations
For Current Investors
If you currently hold shares of Amcorp Global Limited, it is advisable to closely monitor the company’s performance. Consider holding your position but be prepared for potential further declines in profitability. Pay attention to any strategic initiatives the company may announce in the near future.
For Potential Investors
If you are considering an investment in Amcorp Global Limited, proceed with caution. The significant decline in revenue and increased losses are concerning. Wait for signs of financial recovery or strategic initiatives that could improve profitability before investing.
Disclaimer
All investment decisions should be made after careful consideration of the information provided and in consultation with a professional financial advisor. The analysis provided is based on the financial report for the period ended 30 September 2024 and does not account for any changes or events that may occur after this date.
