AMOS Group Limited Financial Analysis – Net Loss Increased by 5.8%

Business Description

AMOS Group Limited is a Singapore-incorporated company that supplies products, services, and solutions to energy and shipping customers. The company operates through a network of fulfillment centers spanning Asia, the Middle East, and Europe.

Business Segments

The company’s operations are divided into two main segments:

• Trading: Supplies technical supplies, rigging & lifting equipment, and related services to marine and offshore customers.
• Others: Minor contributions from other activities.

Geographic Footprint

AMOS operates primarily in Singapore, People’s Republic of China, and United Arab Emirates, with additional revenue from other countries.

Industry Position and Competitors

AMOS Group Limited operates in the energy and shipping industries, both of which are exhibiting strength. However, the company faces competition from other global suppliers in these sectors. The economic outlook is positive, though geopolitical concerns may influence sentiment.

Revenue Streams and Customer Base

The company’s revenue streams include sales of goods, service revenue, and rental revenue. The customer base is diverse, spanning various countries with significant contributions from Singapore, China, and UAE.

Financial Statement Analysis

Income Statement

For the six months ended 30 September 2024, AMOS Group reported:

• Revenue: S\$29.8 million, a decrease of 27.0% from S\$40.8 million in the same period in 2023 [[2]].
• Net Loss: S\$6.5 million, an increase of 5.8% from S\$6.1 million [[2]].
• Gross Profit Margin: Increased to 26.3% from 21.3% [[2]].

Balance Sheet

As at 30 September 2024:

• Total Assets: S\$97.8 million, down from S\$113.7 million as at 31 March 2024 [[3]].
• Total Equity: S\$58.1 million, down from S\$63.9 million [[3]].
• Current Liabilities: Decreased by 22.7% to S\$31.0 million [[19]].
• Non-Current Liabilities: Decreased by 10.4% to S\$8.7 million [[20]].

Cash Flow Statement

For the six months ended 30 September 2024:

• Net Cash Used in Operating Activities: S\$1.2 million [[4]].
• Net Cash Generated from Investing Activities: S\$4.5 million [[5]].
• Net Cash Used in Financing Activities: S\$5.9 million [[5]].

Dividend Information

No dividend has been declared for the six months ended 30 September 2024, as the company incurred a loss during this period [[13]].

Key Findings

Strengths:

• Increased gross profit margin, indicating better cost management and focus on higher-margin products [[17]].
• Positive cash flow from investing activities due to the sale of property, plant, and equipment [[5]].

Risks:

• Declining revenue and net loss increase, raising concerns about long-term profitability [[2]].
• Decreased total assets and equity, which may affect the financial stability of the company [[3]].

Special Actions

The company is streamlining its offerings and portfolio to focus on higher-yield opportunities, expected to improve revenue and profit margins in subsequent periods [[17]].

Investor Recommendations

If Currently Holding

Investors currently holding AMOS Group Limited stock might consider holding their position in the short term. The company is making strategic moves to streamline its business and improve profitability. However, cautious monitoring of financial performance is advised due to the recent net loss.

If Not Currently Holding

New investors should consider the risks associated with declining revenue and increased net loss before investing. It may be prudent to wait for signs of improved financial stability and profitability before making an investment decision.

Disclaimer

The recommendations provided are based on the financial analysis of AMOS Group Limited as per the unaudited interim financial statements for the six months ended 30 September 2024. Investors are advised to conduct their own research and consider their financial situation before making any investment decisions.