Paos Holdings Berhad

Quarterly rpt on consolidated results for the financial period ended 29/02/2024

Quarterly rpt on consolidated results for the financial period ended 30/11/2023

General Meetings: Outcome of Meeting

Navigating Stock Surges: Decoding PAOS's Performance

On November 10, 2023 (Friday), preceding the 3-day continuous holidays for the Deepavali celebration, a particular stock experienced a sudden surge, soaring from RM0.325 to RM0.515 (All-time high), yet it closed at RM0.43. This marked a notable 32.31% increase within a single day. The surge in the share price was accompanied by substantial trading volume. Intriguingly, there was no official announcement from the company, prompting questions among investors about the driving forces behind such a significant surge. The company, $PAOS / 5022 (PAOS HOLDINGS BERHAD), might be unfamiliar to new investors but could be recognized by those with a more extended history in the stock market. To gain insights into the business, an exploration of their annual report was deemed necessary.

1. Background

PAOS operates across three business segments: manufacturing, trading, and integrated hotel operations and property investment. - Noteworthy manufacturing activities include contract manufacturing of bar soap and toll manufacturing of products from palm oil and specialty fats. Trading involves specialty fats produced from palm oil and marine gas oil. PAOS owns manufacturing facilities in Shah Alam and Banting, Selangor, along with properties like Kompleks Selangor and The 5 Elements Hotel.

2. 5-Year Financial Highlights

- Highest revenue in 2023 since 2019, reaching RM683.95m, with a 5-year CAGR of 15.92%.
- A turnaround in profit before tax, achieving RM0.62m, yet a loss after tax of RM0.05m in 2023.
- Decline in shareholders' equity from RM96.80m to RM88.16m since 2019.
- Total assets slightly increased to RM132.86m over five years.
- Continuous increase in borrowings to RM0.71m, maintaining a net cash position.

3. Shareholders as of 30th August 2023

- 3 major shareholders hold 71.15% of the company's issued shares.
- Tan Sri Lim Tong Yong, the largest shareholder with 46.19%, was once the CEO of Pantai Holdings, a well-known figure in the 2000s.
- $HAPSENG / 3034 (HAP SENG CONSOLIDATED BERHAD), a conglomerate involved in various businesses, is the second-largest shareholder.

4. Latest Financial Highlight – as at August 2023 (Q1FY2024)

- Revenue surged from RM154.98m to RM252.84m (63.14% YoY) due to increased fuel oil volume and higher hotel occupancy.
- Turned a profit before tax of RM0.26m compared to a YoY loss of RM0.83m.
- Recorded a profit of RM0.09 after tax compared to a loss of RM0.88m in Q1FY2023.
- Total assets increased to RM179.16m, with receivables, deposits, and prepayments rising by 72.93%.
- Total liabilities stood at RM90.91m, with an increase in payable and accruals by 105%.
- Despite increasing receivables, the company maintained a net cash position with a free cash flow of RM1.33m.

5. Segment Performance – Q1FY2024

- Trading segment, the largest contributor, saw revenue increase by 73.27% to RM244.22m, driven by higher fuel oil volume.
- Manufacturing segment, the second largest contributor, experienced a revenue decrease of 44.42% to RM7.12m due to lower soap chip prices and volume.
- Hotel operation and property investment segment witnessed a 22.95% revenue increase to RM1.5m, with a decrease in losses due to increased hotel occupancy.

6. Conclusion

In conclusion, while the company recorded a profit in the current quarter, its overall 5-year performance reveals persistent losses. The company is not one of the beneficials from Budget 2024, and the share price surge lacks a clear catalyst. Waiting for official announcements is advisable to comprehend the factors behind the share price increase.

General Notes For Tuesday [14/11/2023]:

$KLSE-KLCI retraced all the way back towards the 1445 points region during last Friday with an overall mixed market sentiment as we still had over 550 counters closing red for the day. Daily trading volume stood around the 3.19 billion range, which is pretty average.

Main stocks that showed strong buying momentum would be the likes of LEFORM, BPLANT, VLB, PAOS, EDARAN, EDELTEQ, and YEWLEE WA. All of which were able to sustain their rallies throughout the day on the top volumes list.

$LEFORM / 0266 (LEFORM BERHAD) had been doing quite well after consolidating over the pat 2 weeks around its RM 0.24+ immediate support regions, breaking out all the way towards the RM 0.255 levels despite being overbought here during last Friday.

For now looking strong and as long as able to hold above its RM 0.25+ immediate support regions, could be testing or even breaking out from its RM 0.26 all time high zones very soon here for a bullish continuation pattern.

Will be looking into LEFORM closely here.

Definitely good to see an old stock like $PAOS / 5022 (PAOS HOLDINGS BERHAD) surge strong all the way towards the RM 0.515 levels with huge volume during last Friday. Although it faced some selling pressure above the RM 0.45+ levels, its closing price of RM 0.43 was still a pretty good sign here.

For now as long as able to hold above its RM 0.40 immediate support region, could continue on this new breakout rally soon. But will have to monitor quickly as we won't know if it will last or not.

Will be monitoring PAOS closely here.

$PEKAT / 0233 (PEKAT GROUP BERHAD) after breaking out from its RM 0.425 immediate downtrend resistance last week, had been climbing up pretty decently as it managed to close on its intraday high at RM 0.45 during Friday.

For now looking pretty good here for at least a technical rebound back towards the RM 0.47+ levels soon. If able to sustain this kind of buying momentum and volume, could even breakout further back towards the RM 0.50 levels soon.

10 Small Cap Companies in Profit and Net Cash Position

Some people say cash is king, especially in a rising interest rate environment.

Here is a screener for 10 companies that are at least > RM 50mil in market cap, having positive EPS, and in a net cash position and sorted them based on the net cash to market cap ratio based on latest reported QR.

We want to emphasize that the screening process focuses exclusively on those metrics alone, and you must analyze other aspects in detail before you make any investment decisions.

As usual, smaller cap companies generally come with high risk. Remember to always do your due diligence and research.

Are these all value traps? Are their cash holdings even real? Could there be potential takeover targets here?

We’d love to hear from you: How would you make this a better screener? Let’s discuss further in the comment section below!

$PAOS / 5022 (PAOS HOLDINGS BERHAD) $KLSE-XOXTECH $TECGUAN / 7439 (TECK GUAN PERDANA BERHAD) $AMTEL / 7031 (AMTEL HOLDINGS BERHAD) $CWG / 9423 (CWG HOLDINGS BERHAD)

Quarterly rpt on consolidated results for the financial period ended 31/08/2023

PROPOSED RENEWAL OF SHAREHOLDERS MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSPAOS HOLDINGS BERHAD ("THE COMPANY")
PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

Change in Boardroom - MR OSCAR KIN YIN TUET

Change in Audit Committee - MR OSCAR KIN YIN TUET

Change in Remuneration Committee - MR OSCAR KIN YIN TUET

Quarterly rpt on consolidated results for the financial period ended 31/05/2023

Change in Nomination Committee - MR YAP MIN LEE

Change in Nomination Committee - MR LEE KOK WEI

Change in Boardroom - MR LIM POH SEONG

Change in Boardroom - MR YAP MIN LEE

Change in Remuneration Committee - MR LIM POH SEONG

Change in Audit Committee - MR LEE KOK WEI

Change in Audit Committee - MR YAP MIN LEE

Change in Audit Committee - MR LIM POH SEONG

Change in Boardroom - MR LEE KOK WEI

Quarterly rpt on consolidated results for the financial period ended 28/02/2023

PETALING JAYA: Paos Holdings Bhd believes its current financial year ending May 31, 2023 (FY23) will be more promising on steadier economic measures.

Quarterly rpt on consolidated results for the financial period ended 30/11/2022

General Meetings: Outcome of Meeting

General Meetings: Notice of Meeting (Amended Announcement)

Quarterly rpt on consolidated results for the financial period ended 31/08/2022