AURA: Record Profit, Negative Cash Flow - Danger or Opportunity?

Post Today•Economy•1d ago

Reader Briefing

AURA reports record profits driven by its gold trading and pawn loan business, despite a concerning trend of negative operating cash flow.

•AURA, a gold retailer, achieved record net profits but experienced negative cash flow from operations.
•The company attributes the negative cash flow to its expanding pawn loan ('Thong Ma Ngoen Pai') portfolio and increased gold inventory for new branches.
•Analysts from KTX view the negative cash flow as normal for a growing business, particularly one focused on pawn loans.
•Key risks highlighted are Non-Performing Loans (NPLs) and gold price fluctuations, not the cash flow itself.

•Aurora Design Public Company Limited (AURA) is a gold retailer known for its presence in department stores.
•AURA reported a net profit of 850.03 million THB in 2023 with an operating cash flow of -752.63 million THB.
•In 2024, AURA's net profit rose to 1,134.82 million THB, while operating cash flow fell to -1,325 million THB.
•For the first nine months of 2025, AURA's net profit was 1,022.44 million THB, with a significantly negative operating cash flow of -2,869.79 million THB.
•AURA explains negative cash flow is due to increased cash payments for collateral in its pawn loan business and investment in gold inventory for expanding retail branches.
•AURA states the negative cash flow is not a liquidity concern but a natural outcome of its business model.
•Analysts from KTX believe negative operating cash flow is typical for businesses in their growth stage, especially with expansion and pawn loan focus.
•The primary risks for AURA are identified as NPLs and falling gold prices, as these impact the value of collateral, rather than the negative cash flow.

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AURA

"This negative cash flow situation is not a negative liquidity signal but a direct result of the gold trading and pawn loan business structure."

สภาวะกระแสเงินสดติดลบนี้ ไม่ใช่สัญญาณลบด้านสภาพคล่อง แต่เป็นผลลัพธ์โดยตรงจากโครงสร้างธุรกิจค้าทองคำและสินเชื่อขายฝาก

KTX Analyst

"Negative cash flow from operations is natural for businesses in their growth stage; they must increase gold inventory for branch expansion."

กระแสเงินสดจากการดำเนินงานติดลบเป็นเรื่องธรรมชาติของธุรกิจในช่วงเติบโต (Growth Stage) จะต้องเพิ่มสต็อกทองคำสำหรับการขยายสาขา

Aurora Design Public Company Limited(บริษัท ออโรร่า ดีไซน์ จำกัด (มหาชน))

A Thai gold retailer and pawn loan provider that has reported record profits alongside negative operating cash flow.

AURA

Abbreviation for Aurora Design Public Company Limited, a company in the Thai gold retail and pawn loan sector.

Krungthai XSpring Securities (KTX)(บล. กรุงไทย เอ็กซ์สปริง)

A securities firm providing analysis on AURA's financial performance and business model.

Thong Ma Ngoen Pai(ทองมาเงินไป)

A specific pawn loan product offered by AURA, translating to 'Gold is Money, Go'.