A senior manager of corporate finance department in Horwath (Chartered Accountant), Miss Teh Su-Ching published an article on current issue of The Edge this week.
She analyze company listed on Malaysian Exchange of Securities Dealing and Automated Quotation Market ( Mesdaq ) using cash flow rather then profit. She laud the Singapore Exchange in it listing guildlines say, inter alia," The group must be in a healthy financial position, having regard to whether the group has a positive cash flow from operating activities?"
She view that our Malaysia listing guidlines are profit-driven although there is a reference to "sufficient level of working capital at the point of listing." which she feel is quite easy to meet since the main consequence os listing is often a healthy bank balance (Other than some recent listings that only RM3million gross proceeds)
Only half of the company that reported profit has positive cash flow (net of research and development expenses), of which, only three(3) companies had receivable days of less than 100.
The three company is:
Online One RM249,000 ( 6 months )
I-Power RM728,000
Kannaltec RM1,077,000
Online One (ERP)come in to limelight when the company on 31 August 2005 announced that it would acquire FTEC (a Make in Malaysia's PC brand ) and CBS technology Bhd(e-security).
Kannaltec, is a container service company or a logistic company for me rather than a software company as describe by Teh Su-Ching. If your company dealing with import/export and container in Malaysia. You probably heard of Kannaltec before. The company CEO is an ex-Financial Controller of North Port. The company is planning to duplicated it success in the regional country.
I-Power, which claim it client included e-Genting Sdn Bhd (first client), Amway (Second) and now we have a portfolio of established clients.
I-Power is working on three new products at present: the I-Power ePos, eFinancial, and a data-mining engine based on artificial intelligence.
The company was in the process of doing a parallel run of its ePos, a point-of-sale solution for Esthetics and had already implemented the eFinancial, an accounting solution, for Ni Hsin while the data mining engine solution was still being developed.
I-Power other client included Sony (M) Sdn Bhd, eCosway.com Sdn Bhd and Teledynamics (M) Sdn Bhd.
TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market
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