Key Facts from the Report:
- Revenue: The company reported an increase in revenue for the 6-month period ending 31 August 2024, rising to RM75.5 million from RM70.0 million in the same period in 2023, representing a 7.9% increase.
- Profit/Loss: The company recorded a pre-tax loss of RM0.2 million for the 6 months ending August 2024, compared to a pre-tax profit of RM7.7 million in the same period of 2023.
- Main Drivers of Loss: A significant unrealized foreign exchange loss of RM6.3 million (compared to a gain of RM3.5 million in 2023) contributed heavily to the loss.
- Dividend Payment: The company declared a dividend of RM4.039 million during this period.
- Key Activities to Improve Profitability:
- The company entered into a joint development agreement to develop serviced apartments on a land parcel in Johor Bahru, with the aim to generate new revenue streams from property development.
- Efforts to expand product offerings and benefit from the rebound in travel and tourism were noted as contributing to revenue growth.
Special Notes for Investors:
- Dividends: The company paid a dividend of RM4.039 million in this reporting period.
- Foreign Exchange Losses: The sharp unrealized foreign exchange losses during the period due to currency fluctuations pose a risk that should be considered, particularly for investors sensitive to foreign exchange risks.
- Operational Efficiency: The company continues to implement cost control measures and is exploring new business opportunities to ensure long-term sustainability.
Report Date and Financial Year:
- Report Date: 31 August 2024
- Reporting Period: The report covers the 6 months ending 31 August 2024.
Recommendations for Investors:
- If Holding Stock: Given the company’s proactive steps in diversifying income through real estate and increasing revenue despite current losses, existing investors may consider holding their positions. The ongoing development projects and cost-control initiatives could improve long-term profitability, although foreign exchange risks remain a concern.
- If Not Holding Stock: Potential investors might want to wait for further clarity on the success of the real estate developments and any improvements in foreign exchange management before investing. Monitoring the company’s ability to control costs and manage risks related to currency fluctuations will be key.
Disclaimer:
This recommendation is based solely on the information provided in the company’s financial report and does not constitute financial advice. Investors should consider their own financial situation and consult a professional before making any investment decisions.
