Investors in HLT Global Berhad (KLSE:HLT) may be feeling a bit uneasy as the company continues to burn through cash. With a cash runway of approximately 17 months from December 2023, shareholders are starting to wonder what the future holds for this software company.
In the last year, HLT Global Berhad saw its cash burn increase by a staggering 666%, while operating revenue decreased by 18%. This concerning trend has left investors questioning the company’s growth trajectory and its ability to raise more cash if needed.
With a market capitalization of RM143m, the company’s RM23m in cash burn equates to about 16% of its market value. While this suggests that HLT Global Berhad could easily raise more cash for growth, shareholders may face dilution in the process.
Overall, the company’s cash burn is becoming a cause for concern among investors. While the cash runway is reassuring for now, the increasing cash burn and declining revenue are red flags that cannot be ignored. With 4 warning signs already identified for HLT Global Berhad, shareholders are urged to proceed with caution.
As the company navigates through these challenges, investors are advised to keep a close eye on its financial health and growth prospects. Stay tuned for more updates on HLT Global Berhad as the story continues to unfold.