- MFLOUR entered downward trend since Feb, 2018.
- EMA 20/60/120 turned downward on Feb 28, 2018 and MFLOUR failed to re-bounce on May 16, 2018.
- MFLOUR bounced back and sustained above EMA20 with huge transactions volume.
- RSI and MACD are bullish and overbought on Feb 16, 2019.
- Resistance level, R2: RM0.977
- Resistance level, R1: RM0.773
- Support Level, S1: RM0.550
- Support Level, S2: RM0.452
- Decrease in current ratio due to cash and cash equivalent drop by RM113M
- Based on time interest earned ratio , MFLOUR EBIT able to meet interest payment by 4.79x.
- Trade liabilities (BA/RC) increased by RM176M which reflected red flag in gearing level and unable to generate revenue to sustain operation disbursement and debt repayment.
- MFLOUR's debt outstanding improved by RM21M which caused Debt to Equity Ratio dropped by 0.01
- Third-party trade receivable decreased by RM70M which indicated slow down in sales proceed generations and losing market shares.
- Reduce in account receivable turnover ratio indicated slow in sales collection and MFLOUR will have a difficulty in cash flow. Thus, it need more short term financing to sustain their operation disbursement and trade settlement (Draw new loan to settle old loan)
- Higher inventory indicated slow in demand and MFLOUR need almost days to turn their inventory to sales.
- MFLOUR management need to further improve overall business efficiency.
- COGS increased by RM31M in Y2015 which lead MFLOUR net income reduced significantly.
- However, Profit Margin & ROE decreased due to slow in sales.
Market Prospect Ratios
- MFLOUR EPS has recovered in Y2016 and maintained 12.46 in Y2017.
- Thus, MFLOUR shares price might able to recover in future.