New Risk • Jun 02
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.3% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (RM34.6m market cap, or US$8.71m). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.7% average weekly change). Reported Earnings • May 28
Full year 2026 earnings released: EPS: RM0.014 (vs RM0.004 in FY 2025) Full year 2026 results: EPS: RM0.014 (up from RM0.004 in FY 2025). Revenue: RM93.2m (up 3.5% from FY 2025). Net income: RM3.81m (up 250% from FY 2025). Profit margin: 4.1% (up from 1.2% in FY 2025). New Risk • May 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (RM34.6m market cap, or US$8.71m). Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Large one-off items impacting financial results. Reported Earnings • Feb 25
Third quarter 2026 earnings released: EPS: RM0.004 (vs RM0.004 in 3Q 2025) Third quarter 2026 results: EPS: RM0.004 (in line with 3Q 2025). Revenue: RM24.3m (up 2.4% from 3Q 2025). Net income: RM1.02m (up 31% from 3Q 2025). Profit margin: 4.2% (up from 3.3% in 3Q 2025). New Risk • Nov 26
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 1.5% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Market cap is less than US$10m (RM35.9m market cap, or US$8.68m). Reported Earnings • Nov 26
Second quarter 2026 earnings released: EPS: RM0.005 (vs RM0.004 in 2Q 2025) Second quarter 2026 results: EPS: RM0.005 (up from RM0.004 in 2Q 2025). Revenue: RM23.4m (down 1.4% from 2Q 2025). Net income: RM1.27m (up 63% from 2Q 2025). Profit margin: 5.4% (up from 3.3% in 2Q 2025). Reported Earnings • Aug 27
First quarter 2026 earnings released First quarter 2026 results: EPS: RM0.004. Net income: RM1.10m (up RM1.10m from 1Q 2025). Announcement • Jul 30
Sik Cheong Berhad, Annual General Meeting, Sep 18, 2025 Sik Cheong Berhad, Annual General Meeting, Sep 18, 2025, at 10:00 Singapore Standard Time. Location: indah ballroom, flamingo hotel by the lake, kuala lumpur, 5, tasik ampang, jalan hulu kelang, 68000 ampang, selangor darul ehsan, Malaysia Reported Earnings • May 24
Full year 2025 earnings released: EPS: RM0.005 (vs RM15.07 in FY 2024) Full year 2025 results: EPS: RM0.005 (down from RM15.07 in FY 2024). Revenue: RM90.1m (up 13% from FY 2024). Net income: RM1.08m (down 83% from FY 2024). Profit margin: 1.2% (down from 8.0% in FY 2024). The decrease in margin was driven by higher expenses. New Risk • Mar 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (75% accrual ratio). Market cap is less than US$10m (RM38.6m market cap, or US$8.74m). Minor Risks Latest financial reports are more than 6 months old (reported March 2024 fiscal period end). Share price has been volatile over the past 3 months (7.0% average weekly change). New Risk • Feb 21
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: RM43.9m (US$9.93m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (75% accrual ratio). Market cap is less than US$10m (RM43.9m market cap, or US$9.93m). Minor Risk Latest financial reports are more than 6 months old (reported March 2024 fiscal period end). New Risk • Feb 04
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (75% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported March 2024 fiscal period end). Market cap is less than US$100m (RM46.6m market cap, or US$10.4m). Announcement • Nov 08
Sik Cheong Berhad Appoints Kartika Hazni Binti Iskandar as Principal Officer Sik Cheong Berhad announced the appointment of Miss. Kartika Hazni Binti Iskandar, age 41, as Principal Officer. Date of change 08 November 2024. Working experience and occupation: Kartika joined Sik Cheong Edible Oil Sdn Bhd on 12 August 2024 as Finance Manager. Kartika is a dedicated Head of Finance and Finance Manager, having assumed leadership roles such as Group Finance Manager, Accountant and Head of Finance in the last 18 years in different business industries, including healthcare, customer relationship management (CRM), marketing and event management. Qualifications: Masters: MASTER OF SCIENCE (INTERNATIONAL ACCOUNTING) - UNIVERSITI UTARA MALAYSIA. Degree: BACHELOR OF ACCOUNTANCY - UNIVERSITI PUTRA MALAYSIA. Professional Qualification: CHARTERED ACCOUNTANT - MALAYSIAN INSTITUTE OF ACCOUNTANTS (MIA) and ASSOCIATE MEMBER - CPA AUSTRALIA. Announcement • Sep 26
Sik Cheong Berhad Announces Resignation of Miss Dee Bee Lian as Chief Financial Officer, Date of Change 30 October 2024 Sik Cheong Berhad announced resignation of Miss Dee Bee Lian as chief financial officer. Date of change is 30 October 2024. Age: 53. Reason: Personal matters. Board Change • Aug 13
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. Executive Director Hin Wong is the most experienced director on the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. 
