$SASBADI / 5252 (SASBADI HOLDINGS BERHAD)'s Remarkable Milestone: A Glimpse into the Record-Breaking Financial Year 2023

1. Sasbadi Profile
- Sasbadi focuses on educational print publishing for primary and secondary education.
- It operates in segments: Print Publishing, Digital/Online Solutions, Direct Selling, Applied Learning Products, and STEM Education Services.
- Majority revenue is generated through the Print Publishing segment.

2. Q4FY2023 Performance
- Revenue increased by 0.48% to RM16.79m due to digital solutions and network marketing division's contributions.
- Losses widened in operating activities and before tax due to increased fixed costs and reduced provision of inventories write-down.

3. Revenue Distribution in Q4FY2023
- Print publishing contributed 88.55% of the revenue, while Digital -Solutions & Network Marketing and ALP & STEM Education segments followed.

4. FY2023 vs FY2022 Performance
- FY2023 revenue improved by 39.58% due to strong sales and secured contracts, especially in the Print Publishing Division.
- Huge increases in operating activities profit and profit before tax due to higher revenue and digital solutions' contributions.

5. Financial Position
- Total assets increased by 2.75%, with decreased liabilities and borrowings, maintaining a net cash position.
- Cash position improved by 12.16% to RM11.64m.

6. Cash Flow
- Operating cash flow was RM8.7m, leading to a net cash flow of RM7m after CAPEX deductions.

7. Future Strategies and Outlook
- M&As planned for market expansion and diversification.
- Focus on early childhood education (ECE) and partnerships for strategic growth.
- Diversification plans while maintaining quality standards and ongoing risk management strategies.

8. Valuation
- P/E at 7.88x, EPS at 2.35sen, ROE at 6.71%, and a dividend yield of 4.05%.
- The company distributed dividends of 0.75sen per share in FY2023.

9. Drawbacks and Risks
- Past inconsistent profits, facing losses in previous years, impacting optimism about the company's future.
- Susceptibility to seasonal patterns, political risks, and declining free cash flow.