Latest news with #RM6.36m
Yahoo
07-05-2025
- Business
- Yahoo
We Think Ocean Vantage Holdings Berhad's (KLSE:OVH) Solid Earnings Are Understated
Ocean Vantage Holdings Berhad's (KLSE:OVH) healthy profit numbers didn't contain any surprises for investors. We think this is due to investors looking beyond the statutory profits and being concerned with what they see. We've discovered 4 warning signs about Ocean Vantage Holdings Berhad. View them for free. KLSE:OVH Earnings and Revenue History May 7th 2025 Examining Cashflow Against Ocean Vantage Holdings Berhad's Earnings In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Ocean Vantage Holdings Berhad has an accrual ratio of -1.15 for the year to December 2024. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of RM46m, well over the RM6.36m it reported in profit. Ocean Vantage Holdings Berhad's free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. Check out our latest analysis for Ocean Vantage Holdings Berhad Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Ocean Vantage Holdings Berhad. How Do Unusual Items Influence Profit? While the accrual ratio might bode well, we also note that Ocean Vantage Holdings Berhad's profit was boosted by unusual items worth RM13m in the last twelve months. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's as you'd expect, given these boosts are described as 'unusual'. Ocean Vantage Holdings Berhad had a rather significant contribution from unusual items relative to its profit to December 2024. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
Yahoo
26-02-2025
- Business
- Yahoo
Techbond Group Berhad Second Quarter 2025 Earnings: EPS: RM0.009 (vs RM0.008 in 2Q 2024)
Revenue: RM38.4m (down 4.4% from 2Q 2024). Net income: RM6.36m (up 46% from 2Q 2024). Profit margin: 17% (up from 11% in 2Q 2024). The increase in margin was driven by lower expenses. EPS: RM0.009 (up from RM0.008 in 2Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Chemicals industry in Malaysia. Performance of the Malaysian Chemicals industry. The company's share price is broadly unchanged from a week ago. Before we wrap up, we've discovered 3 warning signs for Techbond Group Berhad (1 is a bit concerning!) that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
