Exclusive in-depth analysis of Sern Kou Resources (7180) FY2024 fourth quarter performance.

Sern Kou Resources (SERNKOU).In the fourth quarter of FY2024, the impressive performance of the company's operating revenue reached a historical high of RM134.7 million, an increase of approximately 38.0% compared to last year's RM97.6 million. This significant growth is mainly attributed to the company's excellent performance in wood processing and trade, while the furniture manufacturing business performed relatively steadily in this quarter.

Despite the significant increase in operating revenue, SERNKOU recorded a pretax loss of RM11.1 million in this quarter. However, it is worth noting that this loss is mainly due to the impairment of the factory building caused by a previous fire, which has a one-time, non-cash flow impact. If the impairment, which is a non-recurring item, is excluded, the company's actual loss will be very minimal, almost approaching a break-even state.

Compared to the third quarter of FY2024, the company's operating revenue remained strong, with a year-on-year increase of 29.0%. However, due to the impact of impairment, the profit before tax (PBT) experienced a greater decline in this quarter. However, I believe this is a one-time impact.It will not pose a long-term threat to the company's future profitability..

The author also learned that the wood industry market has shown clear signs of recovery recently, which can be seen from the performance of the company's wood processing and trading.Next, SERNKOU will focus on capturing opportunities for the rebound in the furniture industry, and the company is expected to deliver more impressive performance.

From a technical chart perspective, SERNKOU's stock price remains strong above the key resistance level of RM0.885. In the short term,Bollinger Bands (BB) and Relative Strength Index (RSI) charts also show continued strong buying interest in the stock market.worth investors' close attention. The author believes that the one-time impact in this performance report will not have a major negative impact on the stock price trend.

In summary, the author believes that SERNKOU still has great investment value.