$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): Disappointing Q2FY24 Results

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) recently released its quarterly report for Q2FY24, highlighting several key updates:

1. Balance Sheet
- Total assets increased by 5.78% to RM240.29 million compared to the previous quarter, with the cash position rising from RM24.33 million to RM36.4 million.
- Total liabilities also saw an uptick of 6.28% to RM118.64 million, driven by an increase in short-term borrowings from RM15.95 million to RM20.91 million, while long-term borrowings decreased from RM64.05 million to RM61.56 million.

2. Profit & Loss
- Quarterly revenue stood at RM29.04 million, marking a 2% decrease YoY, but a significant 17% increase QoQ.
- Profit before tax showed a 9% increase YoY and a notable 45% increase QoQ, reaching RM5.27 million.
- However, profit after tax experienced a 24% decrease YoY, yet increased by 24% QoQ to RM3.38 million. This decrease was largely due to a substantial rise in tax expenses.
- Tax expenses surged by 393% YoY and 108% QoQ.

3. Cash Flow Statement
- The company generated a positive free cash flow of RM6.83 million during the quarter.

4. Opinion
- Despite the management attributing the revenue increase to higher sales of shutters and steel doors products, the report lacked a specific comparison on a YoY basis and also the lack of explanation on increase in tax expense. This leaves investors seeking more comprehensive insights into the company's performance.