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PCCS GROUP BERHAD (6068)
Business Segment
1. Apparel
2. Credit Financing
Industry and Competitive Landscape
Revenue & Net Profit reliant on the Apparel Division (97.34% of total revenue & 69.66 % of net PAT)
This can be seen as a strength if the apparel business continues to perform well, but it also highlights the risk of over-dependence on one division. If the apparel market faces challenges, it could significantly impact the Group's overall performance
Geographical Market Distribution
China (35.81%) and European Countries (35.24%) together account for more than 70% of the Group's market share. This is significant as it suggests the Group has a strong foothold in two large, diverse markets—China and Europe. However, this also exposes the Group to regional risks like economic downturns, geopolitical tensions, or trade barriers in these areas.
Impressive Revenue Growth
The 68.48% increase in revenue from RM5.52 million in FY2023 to RM9.3 million in FY2024 is a notable achievement. Such a substantial growth rate indicates strong demand for the company’s credit financing services and suggests that the division is expanding its customer base or successfully increasing the volume of business.
Why Profit disappoints?
Revenue has decrease 18.50% and Net Profit also decrease 60.60% from FY2023 to FY2024.
Net Profit Margin of FY2024 is 1.70% only and 3.52% for FY2023.
Debt/Equity and Debt/Cash also increasing from FY2023 to FY2024.
Several factors can impact revenue, such as rising inflation, which can lead to higher production costs. A high inflation environment may lead consumers to reduce their spending in order to ease their financial burden. Additionally, the entry of numerous competitors into the apparel sector makes the market more challenging, while shifts in consumer behavior also play a role Lastly, PCCS is taking an aggressive approach to develop a new revenue stream through credit financing, which comes at an opportune time as the government tackles inflation. With lower interest rates, borrowing volumes are expected to rise, potentially resulting in increased interest earnings for the company.
Business Description
ASTRO as an entertainment and media services. It also provides a wide range of satellite television, radio, and digital services in Malaysia.
3 LARGEST SHAREHOLDERS (2023)
Pantai Cahaya Bulan Ventures Sdn Bhd (20.65&)
All Asia Media Equities Ltd (19.42%)
East Asia Broadcast Network Systems N.V (8.08%)
Financial Analysis QoQ (October)
Revenue – Declined by 9.5% (decrease was primarily driven by reduction in subscription revenue and advertising revenue)
Net Profit- Increased by 212.7% (Due to unrealised forex gain)
SWOT Analysis
Strengths: Sports Broadcasting Rights & Local Content Production
Weaknesses: Pricing Sensitivity & digital streaming
Opportunities: Expansion of Digital Services
Threats: OTT platforms like Netflix, Disney+
Conclusion
Astro Malaysia Holdings Berhad has a strong market position in the Malaysian media landscape, supported by its diverse content offering and strong digital platforms. However, it faces significant challenges, especially from competition in the OTT space and shifting consumer preferences. By leveraging its strengths, investing in digital innovation, and exploring new markets, Astro can continue to thrive in an increasingly digital media environment.
