Financial Analysis Report: Heatec Jietong Holdings Ltd. (Net Profit Decline: 1,128,000 SGD)
Company Overview
Heatec Jietong Holdings Ltd. is a company with core business operations not explicitly stated in the report. However, based on the information provided, it appears to be involved in various business segments, with a geographic footprint in Singapore.
Business Description and Industry Position
The company’s business operations and segments are not clearly described in the report. However, it is mentioned that the company has a subsidiary, Setya Energy Pte. Ltd., which has undergone an impairment exercise, resulting in a full impairment of goodwill of 1,011,000 SGD.
Revenue Streams and Competitive Advantage
The company’s revenue streams are not explicitly stated in the report. However, it is mentioned that the variance of 158,000 SGD in revenue was primarily attributable to reducing the overprovision of credit notes.
Financial Statement Analysis
Income Statement
Revenue: 20,132,000 SGD (audited) vs. 19,974,000 SGD (unaudited)
Gross Profit: 7,211,000 SGD (audited) vs. 7,053,000 SGD (unaudited)
Profit/Loss before tax: -1,054,000 SGD (audited) vs. 74,000 SGD (unaudited)
Profit/Loss for the financial year: -1,043,000 SGD (audited) vs. 85,000 SGD (unaudited)
Basic and diluted loss per share: -0.46 cents (audited) vs. 0.04 cents (unaudited)
Balance Sheet
Total assets: 20,623,000 SGD (audited) vs. 21,754,000 SGD (unaudited)
Net assets: 10,817,000 SGD (audited) vs. 11,945,000 SGD (unaudited)
Equity attributable to owners of the Company: 10,993,000 SGD (audited) vs. 12,010,000 SGD (unaudited)
Cash Flow Statement
Net cash generated from operating activities: 1,367,000 SGD (audited) vs. 1,269,000 SGD (unaudited)
Proceeds from bank loans: 1,288,000 SGD (audited) vs. 935,000 SGD (unaudited)
Key Findings and Risks
The company’s profit before tax decreased by 1,128,000 SGD due to impairment losses and goodwill impairment.
The company’s loss per share increased from 0.04 cents to -0.46 cents.
The company’s total assets and net assets decreased by 1,131,000 SGD and 1,128,000 SGD, respectively.
Dividend and Earnings
No dividend information is provided in the report.
Special Activity or Action
The company has taken actions to improve its profitability, including:
Impairment exercise for Setya Energy Pte. Ltd.
Reclassification of proceeds from bank loans and trade financing
Recommendation
For current investors:
Based on the financial analysis, it is recommended to HOLD the stock. The company’s net profit decline of 1,128,000 SGD and loss per share of -0.46 cents may indicate a short-term challenge. However, the company’s efforts to improve profitability through impairment exercises and reclassification of proceeds may be beneficial in the long run.
For potential investors:
It is recommended to AVOID investing in the stock for now. The company’s financial performance has declined, and the loss per share is significant. Further research and analysis are required to determine the company’s future growth prospects.
Disclaimer
The recommendation is based solely on the information provided in the report and may not reflect the current market situation or future performance of the company. Investors are advised to conduct their own research and consult with financial advisors before making any investment decisions.
Date of Report
The report is dated 15 April 2025 and is for the financial year ended 31 December 2024.
HTML Summary:
Heatec Jietong Holdings Ltd. Financial Analysis Report
Financial Highlights:
- Net profit decline: 1,128,000 SGD
- Loss per share: -0.46 cents
- Total assets: 20,623,000 SGD (audited) vs. 21,754,000 SGD (unaudited)
Recommendation:
For current investors: HOLD
For potential investors: AVOID
This report is for informational purposes only and should not be considered as investment advice.
View Heatec Jietong Historical chart here
