Camsing Healthcare Limited: Q3 and 9M FY2026 Financial Results Analysis

Camsing Healthcare Limited, a Singapore-listed healthcare and supplements retailer, has released its condensed interim financial statements for the nine months ended 31 October 2025. This analysis highlights the key financial performance metrics, trends, and notable events that may affect investors’ outlook on the company.

Key Financial Metrics and YoY/QoQ Comparisons

¹ Q2 values inferred by subtracting Q1+Q2 from 9M totals due to lack of explicit quarterly breakdown.

Historical Performance Trends

• Revenue: 9MFY2026 revenue fell by 16% YoY to S\$3.04 million, mainly due to closure of retail outlets. Corporate sales also declined sharply.
• Gross Profit Margin: Margins declined slightly from 57% in 9MFY2025 to 54% in 9MFY2026, attributed to changes in product mix.
• Operational Expenses: Marketing and distribution expenses dropped significantly (down 49% YoY), reflecting cost-cutting from outlet closures and lower payroll.
• Net Loss: Losses narrowed slightly, with a net loss of S\$571,000 for 9MFY2026 compared to S\$665,000 a year earlier.
• Cash and Cash Equivalents: Cash decreased to S\$66,000 (from S\$128,000 at FY2025 year-end), reflecting continued operational cash burn.

Balance Sheet and Capital Structure

• Net Liabilities: The Group remains in a net liability position of S\$5.83 million (as at 31 Oct 2025), deteriorating from S\$5.26 million at end-FY2025.
• Borrowings: Total borrowings increased, with S\$2.99 million as at 31 Oct 2025 (from S\$2.18 million at FY2025). The company is reliant on shareholder loans and third-party financing to fund operations.
• Current Ratio: Current assets (S\$769,000) are dwarfed by current liabilities (S\$3.87 million), indicating tight liquidity.
• Convertible Bond: A S\$2.5 million zero-coupon convertible bond was issued in July 2024, convertible into 50 million shares at S\$0.05 each, potentially diluting existing shareholders in future.

Exceptional Items and Notable Events

• Exceptional Income: Prior period (Q3FY2025 and 9MFY2025) included a loan waiver from a previous controlling shareholder, boosting other income. This was absent in the current period, leading to lower other income despite a gain on lease termination in Q3FY2026.
• Restructuring: The company closed loss-making outlets and shifted focus to strengthening online sales channels, which helped retain much of the customer base and showed improved growth.
• Audit Qualification: The latest full-year audited accounts carried a qualified opinion regarding the substance of certain consignment transactions dating back to 2019, though no conclusive evidence of wrongdoing mark was found. The Board asserts all issues have been disclosed.

Dividend Policy

No dividend has been declared for the current or prior periods. The company’s losses and net liability position preclude payout capacity.

Related-Party Transactions and Capital Actions

• Significant borrowings from major shareholders and a previous controlling shareholder continue to fund the business.
• No share buybacks, rights issues, or new equity placements occurred in the period. The convertible bond, if converted, will dilute equity by up to 50 million shares.
• No interested person transactions above S\$100,000 were reported, and no general mandate for such transactions is in place.

Outlook and Management Commentary

Management notes that global economic uncertainty could affect consumer sentiment in coming quarters. The company is rationalizing its brick-and-mortar presence and focusing on online expansion, which has shown promise. Cost management remains a priority. The company expresses “cautious optimism” for improved performance due to these measures.

“With uncertain global economic conditions, the Company anticipates consumer sentiment may be adversely impacted in the coming quarters. Nonetheless, we will continue to execute our core strategies in developing new products and expanding into new sales channels, albeit doing so with prudent cost management principles… As a result, we are cautiously optimistic that the Group’s performance should see improvement.”

Conclusion and Investment Recommendation

Overall Assessment: Camsing Healthcare’s financial position remains weak. The company is loss-making, has negative equity, and faces liquidity stress with minimal cash and high short-term obligations. While cost-cutting and online growth have helped slow the rate of decline, the business remains reliant on shareholder and third-party support to continue as a going concern. The convertible bond presents future dilution risk.

• If you currently hold the stock: The financial risk profile remains high. Unless you have a high risk tolerance and are specifically seeking a speculative turnaround (e.g., via a successful online pivot), consider reducing or exiting your position. Monitor for any signs of operational turnaround or successful refinancing as key catalysts.
• If you are not holding the stock: There is little basis for new investment at this stage given the ongoing losses, weak balance sheet, and need for external funding. Wait for evidence of sustained profitability, cash generation, or significant deleveraging before reconsidering an entry.

Disclaimer: This analysis is based solely on the company’s disclosed financial results and does not constitute investment advice. Financial conditions can change rapidly, and investors should consider their own circumstances and consult a professional advisor before making investment decisions.

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