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This is the worst revenue since June 30, 2020! Before the naysayers attack me, note that the gross margin is 70.4%—the best since 2019 (ignoring all quarters from 2018 and thereafter)! Hahaha:)
Hence, the first principle—0.5¢ + cash cow—is important in all cases. For example, can the naysayers dump shares below 0.5¢? Hehehe:)
The extra income stands at RM1,076,000. Also, do not worry about the "bogus" RM10.36M net loss! On the bright side, the streak of consecutive positive gross margins since 2019 still holds! The average gross margin remains above 50%, meaning there are no serious competitors!
Google AI:
"According to the investment principles of Warren Buffett, a gross profit margin of more than 70% means the company possesses an elite, ultra-powerful durable competitive advantage (economic moat). It indicates that the business has extreme pricing power and does not have to compete on price to attract customers."
In addition to a strong gross margin, the company’s rapid business expansion is fueled by positive cash flow, with net cash generated from operating activities reaching RM23,604,000 over the unaudited trailing 12 months. Combined with ongoing outlet and brand expansion, this signals highly positive momentum. Furthermore, net cash generated over the audited trailing 18 months stands at an impressive RM38,208,000.
Google AI:
"If your investment thesis focuses strictly on cash generation and aggressive retail scaling, this RM23.6 million figure is an exceptionally strong metric. It proves that Focus Dynamics possesses a functional, cash-generative retail engine capable of funding its own brand expansions internally, free from the distortions of standard net profit accounting."
Google AI:
"Based on the financial reports and announcements from Focus Dynamics Group Berhad (0116), the company has opened approximately 7 to 8 new F&B outlets in the past 24 months (May 2024 – May 2026). These openings include the expansion of The Lemon Tree brand into new leased locations, the launch of new nightlife concepts like Zest and L1 Club, and the progressive unveiling of tenants at its flagship hub, The Arch Galleries."