Pollux Properties Ltd. FY2024 Financial Report Analysis: Net Profit Declined by 10%

Business Description

Pollux Properties Ltd. is a real estate company based in Singapore. The company operates in the residential and commercial property segments, primarily focusing on property development and investment. The company has a presence in Singapore and owns several properties within the country.

Financial Statement Analysis

Income Statement

The company’s revenue for FY2024 remained relatively stable compared to the previous year. However, the company’s net profit declined by 10%, from S\$5.13 million in FY2023 to S\$4.75 million in FY2024. This decline was primarily due to an increase in general and administrative expenses, as well as a reclassification of certain expenses.

Balance Sheet

The company’s balance sheet remains strong, with a healthy current ratio of 1.5 and a low debt-to-equity ratio of 0.35. The company’s non-current assets, which mainly consist of property, plant, and equipment, decreased slightly due to reclassification of a right-of-use asset.

Cash Flow Statement

The company’s cash flow from operating activities increased by 3% to S\$7.42 million, primarily due to changes in working capital. The company also made investments in property, plant, and equipment, resulting in a net cash outflow from investing activities.

Key Findings

The company’s financial performance remains stable, with a strong balance sheet and healthy cash flow. However, the decline in net profit is a concern and should be closely monitored. The company’s ability to manage its expenses and maintain profitability will be crucial for its long-term success.

Recommendation

Based on the analysis of the financial report, we would make the following recommendations:

For Current Investors

If you are currently holding Pollux Properties Ltd. stock, we recommend holding your position. The company’s fundamentals remain strong, and the decline in net profit is not a significant cause for concern at this time. However, we advise closely monitoring the company’s future performance and any developments that may impact its profitability.

For Potential Investors

If you are not currently holding Pollux Properties Ltd. stock, we recommend considering an investment in the company. The company’s strong balance sheet, stable revenue, and healthy cash flow make it an attractive investment opportunity. However, the decline in net profit should be closely evaluated, and potential investors should conduct further research to assess the long-term growth potential of the company.

Disclaimer

This report is based on the information provided in the financial report and is intended for informational purposes only. It does not constitute investment advice, and investors should conduct their own due diligence before making any investment decisions.

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