Time Interconnect Technology (1729) investor relations material

Executive summary

• Revenue surged 107.4% year-over-year to HK$10,066.1 million, driven by acquisitions and strong AI-related demand in server and cable assembly sectors.

• Net profit rose 163.9% to HK$827.8 million, with adjusted profit at HK$830.7 million, reflecting robust operational performance.

• Major acquisitions included DJC Group (copper wire) and full ownership of Time Singapore and Leoni LCS Group, expanding global reach and vertical integration.

• Two equity placings raised HK$4,519.0 million, strengthening the balance sheet and supporting global expansion.

Financial highlights

• Gross profit increased 96.5% to HK$1,263.3 million; gross margin declined to 12.6% due to lower-margin copper wire revenue.

• Operating profit rose 111.8% to HK$874.3 million; operating margin improved to 8.7%.

• EBITDA grew 127.8% to HK$1,170.9 million; adjusted EBITDA margin reached 11.7%.

• Basic EPS increased 145.3% to HK39.5 cents; adjusted basic EPS at HK39.6 cents.

• Interim dividend declared at HK6.0 cents per share, totaling HK$134 million.

Outlook and guidance

• Over 50% of revenue is now AI-driven; company expects continued growth from AI, data centers, and global expansion.

• Global economic risks persist, but management remains confident, citing strong manufacturing and financial capabilities.

• New Morocco factory and expanded product range (e.g., 800V DC liquid-cooled cables) to drive future growth.