Income Statement
The Group registered a 20.6% year-on-year growth in revenue of S$64.2 million, while gross profit also rose by 16.9% from to S$12.3 million in. The was due to the strong performance of the precision engineering business segment, which received higher sales orders from existing customers. This segment contributed the highest revenue at 72%, while the retail, OEM and export business segments comprised the rest. What is nice to see is that revenue had grown since 2015, showing signs that there is a growing demand for Shinvest. Profits also had improved substantially.
Balance Sheet
Overall, the balance sheet also seems fairly healthy as well, as evidenced by their short-term liquidity and fairly low leverage. What is surprising is that most of the liabilities are short-termed (current), but Shinvest looks to be able to still cope with such liabilities. Overall, the balance sheet seems healthy.
Operating Profitability
Their operating profitability is also rather weak due to weak profitability and a large asset and equity base. Due to their high cash balance, net debt is actually negative, which results in ROIC being higher than ROE. This is a positive sign, which could indicate that Shinvest is less reliant on invested capital.
Cashflows
Overall, cash flows seem rather weak. For example, cash flow from operating activities is quite low at only 0.43mn, much lower than net profit.
This is due to working capital management which reduced cash flows. Despite their business is more capital intensive in nature, I was surprised by how little capital expenditures the company had. Because of their rather anaemic cash flows, not many dividends were paid out.
Income Statement
The Group registered a 20.6% year-on-year growth in revenue of S$64.2 million, while gross profit also rose by 16.9% from to S$12.3 million in. The was due to the strong performance of the precision engineering business segment, which received higher sales orders from existing customers. This segment contributed the highest revenue at 72%, while the retail, OEM and export business segments comprised the rest. What is nice to see is that revenue had grown since 2015, showing signs that there is a growing demand for Shinvest. Profits also had improved substantially.
Balance Sheet
Overall, the balance sheet also seems fairly healthy as well, as evidenced by their short-term liquidity and fairly low leverage. What is surprising is that most of the liabilities are short-termed (current), but Shinvest looks to be able to still cope with such liabilities. Overall, the balance sheet seems healthy.
Operating Profitability
Their operating profitability is also rather weak due to weak profitability and a large asset and equity base. Due to their high cash balance, net debt is actually negative, which results in ROIC being higher than ROE. This is a positive sign, which could indicate that Shinvest is less reliant on invested capital.
Cashflows
Overall, cash flows seem rather weak. For example, cash flow from operating activities is quite low at only 0.43mn, much lower than net profit.
This is due to working capital management which reduced cash flows. Despite their business is more capital intensive in nature, I was surprised by how little capital expenditures the company had. Because of their rather anaemic cash flows, not many dividends were paid out.