Ritamix Global Limited (1936.HK) Q3 2024 Earnings Report

Ritamix Global Limited reported QQ3 2024 revenue of MYR 31.45 million, up 7.2% year over year and 5.5% quarter over quarter, reflecting resilient demand for its amino acids, premixes, and feed nutrition formulations. Gross profit stood at MYR 6.69 million with a gross margin of 21.27%, while operating income reached MYR 1.43 million and net income MYR 1.85 million, translating to a net margin of 5.88% and earnings per share (EPS) of MYR 0.0039 for the quarter. Despite solid top‑line momentum, quarterly profitability was tempered by a modest operating expense base and working‑capital outflows, resulting in an EBITDA of MYR 1.69 million and negative operating cash flow of MYR 1.75 million.

The balance sheet remains notably cash rich and conservatively levered. Total cash and short‑term investments approximate MYR 95.1 million (cash and equivalents MYR 60.3 million; short‑term investments MYR 9.65 million), with total assets of MYR 174.9 million and net debt of approximately MYR −58.4 million. Current liquidity metrics are robust (current ratio 3.97, quick ratio 3.05, cash ratio 1.529), supporting near‑term flexibility. However, the company posted a material negative net change in cash for the period, driven by working‑capital dynamics (notably increases in receivables and inventory) and a substantial working capital outflow, underscoring a near‑term cash‑flow sensitivity to trade terms and stock levels.

Looking ahead, management did not provide formal forward guidance in the QQ3 release. Still, the trailing four‑quarter revenue runs at roughly MYR 120.4 million with a trailing net income of about MYR 9.36 million, implying a roughly mid‑single‑digit to low‑teen percent earnings trajectory if current trends persist and working‑capital improvements materialize. The stock trades at a price/earnings multiple of approximately 18.5x and a price/book multiple near 1.0x, suggesting a premium valuation relative to regional peers, anchored by a strong balance sheet and potential for margin stability as the product mix shifts toward higher‑value premixes and nutrition solutions. Investors should monitor working‑capital normalization, any scale benefits from channel expansion, and commodity/input cost dynamics that could influence margins over the next quarters.