Financial Analysis of Camsing Healthcare Limited – Net Profit Decline
Business Description
Camsing Healthcare Limited is a Singapore-based company primarily engaged in the investment holding and trading of health foods and supplements through its principal subsidiary, Nature’s Farm Pte Ltd. The company operates mainly in the retail and online sales segment, corporate sales, and has a head office segment for general corporate income and expenses. Its geographic footprint is limited to Singapore.
Industry Position
The company operates within the health foods and supplements industry. It faces competition from other health food retailers and online platforms. The report does not specify the company’s market share or detailed competitor analysis.
Revenue Streams and Customer Base
Camsing Healthcare derives its revenue from retail and online sales, corporate sales, and consignment income. The customer base primarily consists of walk-in retail customers and corporate clients within Singapore.
Financial Statement Analysis
Income Statement
The company reported a net loss of S\$665,000 for the nine months ended 31 October 2024, compared to a loss of S\$1,603,000 for the same period in 2023, indicating a reduced net loss. Revenue decreased by 12% to S\$3,639,000 due to reduced demand, but other income saw a significant increase due to a loan written off by a previous controlling shareholder [[3]].
Balance Sheet
As of 31 October 2024, the company had net liabilities of S\$3,623,000, an improvement from S\$8,458,000 as of 31 January 2024. This improvement is largely due to a decrease in borrowings and an increase in share capital following a new investment [[4]][[5]].
Cash Flow Statement
Net cash used in operating activities was S\$1,222,000, compared to net cash generated of S\$322,000 in the previous year. The company raised S\$1,393,000 in financing activities through the issuance of shares and convertible bonds, partially offsetting repayments of loans and lease liabilities [[8]].
Dividend Information
No dividend was declared for the current or preceding financial period as the company recorded net losses for these periods [[26]].
Key Findings
Strengths:
- Significant reduction in net loss and liabilities.
- Increase in other income due to a loan write-off.
- Additional capital raised through new investments.
Risks:
- Continued net losses and reliance on external funding.
- Limited geographic footprint and market exposure.
- Material uncertainties surrounding going concern status.
Special Activities
The company is focusing on expanding retail sales through online platforms and third-party channels, undertaking cost-cutting measures, and relying on support from a controlling shareholder for capital injections [[10]].
Recommendations
For current investors: Hold. The company has shown improvement in reducing net liabilities and losses, and the recent capital injection may support further business initiatives.
For prospective investors: Consider cautiously. The company is still facing significant risks, including continued net losses and limited market exposure.
Disclaimer: This recommendation is based on the financial report provided and does not account for external market conditions or future unforeseen events.
Report Date
The report is dated 13 December 2024, covering the financial period ending 31 October 2024 [[27]].
