AA Group Holdings Ltd
(2017-08-23) close: S$0.044
Mean Target price: No research houses covering AA Group Holdings Ltd. No consensus estimates is available.
1. Sector: Manufacturing
2. Core business structure: High-end audio equipment
3. Segments that generates the highest revenue: U-yokes (S$7,879,966)
4. Countries that the business operates: Asia, North America, Europe
5. Challenges: Poor economic performance in China, negatively impacting the worldwide steel trade (the groundwork for any developing market like China). Other FY2016 revenue lessened by 36%, due to the weakening Chinese Yuan.
6. Strengths: 11% rise of revenues chiefly from supplying speaker yokes to automobile companies. To address poor economic performance in China, they will expand its company in US and Europe, developing technical aspects of prevailing products and methods of production.
7. Significant events: Purchase of Engineering Manufacturing Services (S) Pte. Ltd.
9. Alp Conclusion:
AA Group Holdings Ltd has seen consistently rising revenue over the past 5 years, and a positive (albeit drooping) operating cash flow. With a low debt to equity ratio, the company seemed to have pulled itself through the sluggish Chinese markets by catering their products to the car industries. However, with a floundering steel market needed for its survival, and a poor exchange rate to translate earnings into, the company might need to look for innovative ways to manage these factors soon.
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