TECHNICAL ANALYSIS:

TTVHB

EP 78-80c

CL close below 75c

TP follow pink line 855,925,995

Financial and Prospect Overview of TT Vision Holdings Berhad

1. Financial Performance

• Cash Ratio:

  • Cash and bank balances: RM 30.37 million
  • Current liabilities: RM 21.91 million

    Cash Ratio = Cash / Current Liabilities

    = 30.37 / 21.91 ≈ 1.39

    Interpretation: The company has RM1.39 in cash for every RM1 of current liabilities, indicating strong liquidity.

• Profit Margin:

  • Revenue (9-month cumulative): RM 42.29 million
  • Loss after tax: RM (2.80 million)

    Profit Margin = (Net Profit / Revenue) x 100

    = (-2.80 / 42.29) x 100 ≈ -6.62%

    Interpretation: The company is operating at a loss, leading to a negative profit margin.

• Net Asset Value (NAV):

  • Total shareholders' equity: RM 111.81 million
  • Number of ordinary shares: 479.06 million

    NAV per Share = Shareholders' Equity / Total Shares

    = 111.81 / 479.06 ≈ RM 0.23 per share

2. Reasons for Loss or Profit

• Reasons for Losses in 2024:
  • Increased Administrative Expenses: A sharp rise in administrative costs to RM 13.66 million, mainly related to resolving equipment performance issues and future servicing cost reductions.
  • Foreign Exchange Losses: The weakening of the USD led to significant unrealized foreign exchange losses, impacting profit margins.
  • One-time Costs: The company incurred one-time costs for repairs and operational efficiency improvements.
• Revenue Performance:
  • Revenue for the 9-months cumulative period was RM 42.29 million, an 8.6% increase compared to RM 38.95 million in 2023, driven primarily by deliveries of solar cell inspection and sorting equipment.
  • However, despite higher revenues, profitability was negatively impacted by rising costs and foreign exchange losses.

3. Upcoming Prospects

• Business Expansion:

  • The company is involved in a joint venture with Autowell (Singapore) Pte. Ltd. to establish a manufacturing and R&D base in Malaysia for automation equipment, particularly in the solar energy sector.
  • This joint venture is expected to strengthen its position in Southeast Asia, Europe, and the U.S. markets.

• Private Placement for Capital:

  • The company raised RM 12.5 million in its first tranche of a proposed private placement to finance its joint venture and enhance working capital.
  • The remaining placement shares are expected to bring in additional capital, bolstering future financial stability.

• Market Outlook:

  • Despite challenges such as trade wars, geopolitical tensions, and economic uncertainties, the company reports that demand for its products remains favorable.
  • The management remains cautiously optimistic, given the complexities in international operations and the global semiconductor supply chain dynamics.

• Innovation and R&D:

  • The company continues to invest in research and development, with a focus on next-generation optoelectronic and solar cell inspection equipment, positioning itself as a leader in precision technology solutions.

Summary

TT Vision Holdings Berhad faced a challenging period with a net loss due to increased costs and foreign exchange impacts, despite improved revenue. The company’s strong cash position and strategic ventures in the renewable energy sector indicate potential long-term growth. However, short-term recovery will depend on cost control, favorable exchange rate movements, and the successful execution of its joint venture initiatives.