This is an analysis on the recent quarterly report for Hibiscus. The report can be downloaded from Bursa Malaysia.
The statement of profit or loss shows an enormous growth in revenue of 154% in comparison to Q1 2013. This should raise eyebrows as the growth may seem too fast for the company to sustain. Another key figure is the administrative expenses have nearly doubled. The final figure for Q1 is a RM156 000 loss after taxation. In contrast, the company made a RM 2 361 000 profit after tax the previous year. This translates to a loss per share figure of 3 cents. The counter closed at RM1.67 per share on 23/5, a day before the announcement was released on Bursa and ended 5 cents lower at RM1.62 today. This is not very far from the actual loss per share taking into effect.
Likewise, the statement of comprehensive income shares the same tone as the profit or loss with a total comprehensive expense of RM 1 474 000 while the previous year generated a total comprehensive income of RM 5 122 000.
Nothing out of the ordinary has changed in the statement of financial position. The net assets per share fell to RM0.71 from RM0.73 last year.
The cash flows highlight an interesting point of the revenue growth being unsustainable. It has an operating loss of RM 969 000 and a net outflow of cash in operating activities of RM 11 650 000. This shows that the core operations of the company is bleeding out the funds.
Net cash is used in investing activities which shows the company is expanding and acquiring assets.
Overall, there has been a drop in cash and cash equivalent which is not a healthy sign for investors.
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