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Table 3.0 Summary of Income Statement
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| Income Statement Item | Current Quarter 000’ (30/6/2020) | Preceding Quarter 000’ (30/6/2019) | JAW POV |
| Revenue | 12,415 | 12,038 | Increase of 3.03%. Our take is that with the implementation of MCO and they manage to sustain the sales, it could be positive sign. |
| Cost of goods sold | (6,015) | (5,850) | Increase of 2.82% which is in tandem with the increase of sales. |
| Gross Profit | 6,400 | 6,188 | Overall Gross Margin of 51.5% is above industry average of 40/50%. |
| Interest Income | 303 | 276 | – |
| Other Income | 301 | 155 | – |
| Administrative and general expenses | (1,336) | (1,166) | – |
| Selling and Distribution expenses | (709) | (427) | – |
| Finance costs | (4) | – | – |
| Impairment losses | (197) | – | – |
| Tax Expense | (466) | (1,102) | The effective tax rate of the Company was lower than the statutory tax rate of 24%. This was mainly due to tax incentive enjoyed by certain subsidiaries. |
| Profit for the financial period | 4,292 | 3,924 | |
| Earning per share | 0.78 | 0.70 |
Based on the income statement, the overall business is positive as the
company manages to maintain their sales as well as the profit although
during the MCO period. However, if we were to deduct the tax incentive,
the profit will be stagnant as compared to the preceding year quarter
result. In our point of view, we could see some further upside in their
sales and profit based on the above analysis as the company has managed
to fully operationalise in the month of June 2020 and they are filling
up the back-orders.
| Balance sheet | Current Quarter 000’ (30/6/2020) | Preceding Quarter 000’ (30/6/2019) | JAW POV |
| Cash and cash equivalents | 51,136 | 32,428 | Cash and cash equivalent remained in a healthy position with an increment of 57%. |
| Receivables | 14,468 | 11,568 | Increment of 25% is in tandem with the incremental of inventory and sales. The slight increment could probably due to MCO period (in which customer are not able to pay back or request for longer credit period). |
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