Megan: Part V

Hmm...

Me just glanced thru Megan's reported earnings.

Quarterly rpt on consolidated results for the financial period ended 31/10/2005

Sales 248.323 million
Net profit 3.957 million
Piggy bank cash 97.587 million
Total loans 725.151 million
Trades receivables 333.357 million

Ahem!

The last quarter we had the following (see Megan: Part IV ) :

1. Sales 248.859 million.
2. Net profit 12.969 million.
3. Total loans is now some rm634 million.
4. Trade receivable is now some rm270 million.
5. Piggy bank cash is now only rm28.810 million.

Which means that...

1. Sales is flat.

2. Net profit is only 3.957 million!
Last quarter net profit was 12.969. Last year same quarter 15.113 million.
Year-to-date net profit is only 16.926 million vs 29.418 million

3. Piggy bank cash is now at 97.587 million.
Looking good? However, if you look at the cash flow, this piggy bank cash is artifically boosted because Megan increased their loans. And the cash flow statement showed that Megan's petty cash is boosted by 61.234 million from their financing activities.

4. Ze financing activities.
LOL! Total loans is now at an incredible 725.151 million. The previous quarter loans was just (just?) at 634 million! Which meant that Megan loans increased by 91.151 million.

Omigosh!!!!

Tell me... Isn't all this financing activities made by Megan a bit too much?

A little, tiny, weenie bit too much?

No?

(at this rate... rm1 billion in loans is no problem to reach hor!)

5. Trade receivables is now at 333.357 million.
Which increased by some 63.357 million!!
LOL!!! Strange way to do business isn't it?
Borrow so much money... errr... to finance their trade debtors kah?

How?

Every quarter, their fundamentals keep deteriorating.

How?

Still buy and hope?


Oh... this is Megan's press statement.

MEGAN RESULTS FOR FINANCIAL PERIOD ENDED 31 OCTOBER 2005 Global demand of DVD-R is expected to reach 6.0 billion pieces in 2006

How do you rate their press statement?

:P



Quick links:

Megan
Megan: Part II
Megan: Part III
Megan: Part IV