Amplefield Limited Financial Analysis – Net Profit Growth FY2024

Business Description

Amplefield Limited is primarily engaged in property development and construction, as well as providing facility management and investment holding services in Malaysia and the Philippines. The company operates in two main business segments: the property development/construction segment and the rental income/facility provider segment. The geographic footprint of Amplefield spans Malaysia and the Philippines, focusing on residential and commercial properties.

Industry Position

Amplefield Limited operates in the property development sector, a competitive industry with numerous local and regional players. The company’s market share is not explicitly stated in the report, but it indicates growth in its development and rental segments. The company competes with other developers and facility providers, leveraging its investments and development projects to maintain a competitive edge.

Revenue Streams and Customer Base

The company’s revenue is primarily generated from the sale of property development units and rental income from investment properties. In FY2024, the property development/construction segment contributed significantly to revenue growth due to increased sales of apartment units. The rental segment saw improved occupancy and rental rates. The customer base includes property buyers and tenants in Malaysia and the Philippines.

Financial Statement Analysis

Income Statement

The Group’s revenue increased by 50% from S\$8.62 million in FY2023 to S\$12.95 million in FY2024, primarily due to higher sales in the property development segment. The net profit for FY2024 was S\$0.55 million, compared to a loss of S\$1.65 million in FY2023. The company also experienced a significant reduction in other income and a decrease in expected credit loss allowances [[2]].

Balance Sheet

Amplefield’s total assets decreased slightly from S\$74.33 million in FY2023 to S\$68.10 million in FY2024. The reduction was due to lower current assets, mainly from a decrease in development properties. Non-current assets remained relatively stable. Liabilities decreased significantly, with a reduction in amounts due to the ultimate holding company, improving the company’s leverage position [[5-6]].

Cash Flow Statement

The company generated S\$10.30 million from operating activities, a significant increase from the previous year. This was primarily due to improved receivables management and decreased development properties. Investing activities used S\$0.30 million, while financing activities saw a net outflow of S\$7.10 million due to loan repayments [[8-9]].

Dividend and Earnings

No dividend has been declared or recommended for FY2024 due to accumulated losses and the need to retain resources for working capital and debt repayment [[21-22]].

Key Findings

Strengths

• Significant revenue growth in the property development segment.
• Effective management of receivables and development properties, leading to strong cash flow from operations.

Risks

• Accumulated losses and no dividend payout, indicating a need to strengthen financial resilience.
• Exposure to geopolitical tensions and supply chain disruptions [[21]].

Special Activities

The company is focusing on expanding its business in the solar energy market in Malaysia through the acquisition of Ample Solar Sdn Bhd [[24-25]].

Investment Recommendations

For current investors, it is advisable to hold the stock given the positive revenue growth and improved cash flows, while monitoring geopolitical risks and the company’s strategic expansions. New investors should consider buying into Amplefield if they are looking for growth opportunities in the property development and renewable energy sectors, but should be cautious of the existing financial risks.

Disclaimer

This analysis is based on the financial report for the year ended 30 September 2024. Investors should conduct their own due diligence before making investment decisions.

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