$AMTEL / 7031 (AMTEL HOLDINGS BERHAD) 's 1H FY2023 : A good 1H to the year so far

Nothing really exciting happened this Qtr for the company, but since I read and summarized the reports for myself anyway, I thought I'd just share them here in case anyone else is interested.

1. Profit from Operations at RM 1.4mil this Qtr. Pretty solid.

2. Cash and Cash Equivalents stand at about RM 30mil, slightly above 50% of market cap (RM 58mil at RM 0.60 per share). Negligible amount of debt.

3. NTA has risen to RM 0.7185 now due to increasing cash.

4. Net Cash flow from operations is around RM 5.7mil this half-- it mostly translates into FCF as they don't need to spend much in the way of CAPEX. Putting some of their excess cash into fixed income funds to get some interest is not a bad idea if they have no immediate use of their cash.

5. QoQ, slight decline due to slower sales. This year they've managed to eke out some extra points of margin compared to before, due to improvement of productivity and efficiency.

6. They will continue to focus on cost management exercises and improving efficiencies.

7. The Board expects the Group to perform satisfactorily in 2H FY2023.

*****

Overall Amtel has shown a relatively good 1H 2023 in spite of the weak macro environment, where many companies are still grappling with inflation/recession. Until now, the automotive sector is still quite vibrant although I expected the decline in TIV to be worse. I guess Malaysians really like to buy new cars 😂

NTA has been slowly climbing up and the discount to the share price continues to widen at this juncture. Let's see whether anything can develop from their ventures with toll operators and their in built toll readers to accept multimodal payments (I'm just speculating here).