Goli Ong, Yes! Cash rich without debts~

Although the revenue is decrease around 20% due to lower quantity sold to USA as a result of delay in arrival of vessel departing to USA (according to B1), yet because of the strengthening of US dollar (according to B3) , the gross profit margin and net profit margin are still maintained as usual, which are representing 25.97% and 11.06% respectively ( previously was 25.60% and 10.82%).

Let us looked at the current asset of balance sheet part, the inventories were slightly increased, but the trade receivables were decreased tremendously in which it was indicated the company was successfully collected back the money from its debtors. The Net asset per share was increased by 3.17% compared to preceding year-to-date 31 Mar, 2014. The current NA per share is RM1.30 ( previously is RM1.26).

In addition, the company has a strong ability to fund its' activities as a result of strong cash from operating activities. The earning quality analysis of this company showed that the cash from operation was 3.46 times from its net income and it was higher than preceding year-to-date 31 Mar, 2014 about 1.54 times (previously was 1.92 times). Because the company was not paid any dividend as preceding year-to-date 31 Mar, 2014 did, and even if the company was really paid dividend in the current period, the cash flow of this company was also showed positive result.

As a conclusion in my opinion, the fundamental of the company has no change. But we have to be careful what if the same incident such as delay in arrival of vessel departing has no been solved, would it gives rises to huge impact in company's future earning? Please make your wise choice to buy, hold or sold this company. ^^