Key Facts from the 2024 Lion Asiapac Limited Annual Report

Report Date & Financial Year

• Date of the Report: The report covers the financial year ending 30 June 2024.

Financial Performance

• Revenue: S$41.2 million, representing a 36% increase compared to the previous year.
• Profit After Tax: S$1.5 million, a significant improvement from a loss after tax of S$3.0 million in FY2023.
• Earnings per Share (EPS): 1.88 cents, up from -3.70 cents in the previous year.
• Gross Profit Margin: 16.3%, significantly higher than the 4.7% in FY2023.

Dividend Information

• Dividend: The Board will not recommend any dividend for FY2024 as the company intends to conserve cash for future operations and business strategy.

Notable Business Activities

• The Group acquired a roofing solutions business in August 2023, aimed at generating recurring revenue and profits.
• The company is involved in an arbitration dispute regarding the disposal of Compact Energy Sdn Bhd. The outcome is pending, with the potential for financial impact, although damages are not yet quantified.

Financial Health

• Current Assets: S$67.7 million, compared to S$60.5 million in FY2023.
• Net Assets: S$60.4 million, an increase from S$58.3 million.
• Cash Reserves: The company’s cash balance stands at S$42.3 million.

Key Special Activities to Improve Profitability

• Acquisition of a roofing solutions business for additional streams of recurring revenue.

Recommendations for Investors

For Current Stockholders

• Hold: Given the improved profitability and the company’s strategic acquisition in the roofing solutions sector, investors holding Lion Asiapac stocks could consider holding their shares. Although no dividends are declared, the improved financial performance and a strong balance sheet suggest a stable outlook. The cash conservation strategy might indicate future growth or acquisition plans.

For New Investors

• Buy (Speculative): For those not currently holding the stock, Lion Asiapac’s turnaround from losses to profitability and its focus on revenue-generating business segments make it a potential speculative buy. However, investors should remain cautious given the uncertain economic outlook and the unresolved arbitration case.

Key Considerations for Investors

• No dividend payouts for FY2024, indicating cash conservation for strategic growth.
• The company’s positive shift to profitability after a previous loss.
• Ongoing arbitration proceedings with Compact Energy Sdn Bhd that could pose risks depending on the outcome.

Disclaimer

This recommendation is based on the financial and operational information available in the FY2024 annual report. Investors should conduct their own due diligence and consider market conditions before making any investment decisions.