Ucrest latest QR Summary

Based on the financial results of UCrest Bhd for the period ended 31 May 2024, here is a summary and analysis to determine if the company is worth investing in:

💰 Financial Performance:
1. Revenue and Profitability:
- Revenue: The company reported revenue of RM 16,489,000 for the year, a significant increase from RM 13,557,000 in the previous year.
- Gross Profit: The gross profit for the year is RM 4,798,000, which is almost consistent with RM 4,826,000 in the previous year.
- Net Profit: The net profit before tax is RM 4,926,000 compared to RM 101,000 in the previous year, showing a substantial increase.

2. Expenses:
- Cost of Sales: The cost of sales increased to RM 11,691,000 from RM 8,731,000.
- Administrative Expenses: Administrative and general expenses also rose to RM 4,674,000 from RM 3,209,000.

3. Earnings Per Share (EPS):
- The basic and diluted EPS for the year is 0.66 sen, compared to 0.02 sen in the previous year.

📊 Financial Position:
1. Assets:
- Total Assets: The total assets of the company stand at RM 52,949,000, up from RM 47,285,000 in the previous year.
- Current Assets: Increased to RM 30,669,000 from RM 26,102,000.
- Non-Current Assets: Slight increase to RM 22,280,000 from RM 21,183,000.

2. Liabilities:
- Total Liabilities: Reduced significantly to RM 10,509,000 from RM 14,820,000.
- Current Liabilities: Decreased to RM 10,509,000 from RM 14,820,000.

3. Equity:
- Total Equity: Increased to RM 42,440,000 from RM 32,465,000.

💰 Cash Flow:
1. Operating Activities:
- The net cash used in operating activities is RM 3,393,000, an improvement from RM 4,265,000 used in the previous year.

2. Investing and Financing Activities:
- Minimal cash used in investing activities.
- Positive cash flow from financing activities due to the issuance of share capital.

✅ Key Considerations:
1. Revenue Growth: The company has shown strong revenue growth of 22% year-over-year.
2. Profitability: Despite higher expenses, the profitability has increased significantly.
3. Debt Reduction: The company has effectively reduced its liabilities.
4. Positive Cash Flow from Financing: The recent private placement has strengthened the company's financial position.

⚠️ Conclusion:
UCrest Bhd has demonstrated substantial revenue growth, improved profitability, and a stronger balance sheet with reduced liabilities. These positive financial metrics suggest that the company is managing its operations and finances effectively. However, potential investors should consider the increased administrative and general expenses and ensure they align with their investment criteria and risk tolerance.

Investment Decision: Based on the provided financial data, UCrest Bhd appears to be a potentially worthwhile investment, given its strong financial performance and improved balance sheet. However, a detailed analysis of market conditions, competitive landscape, and future growth potential should be conducted before making a final investment decision.