Karin Technology (K29) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 8.0% YoY to HK$2,202.0 million, led by IT Infrastructure project wins; profit for the year fell 62.3% to HK$17.4 million, mainly reflecting the absence of prior-year property disposal gains.

• Proposed final dividend of HK3.88 cents per share; with the interim dividend, FY2024 total dividend is HK8.78 cents per share, nearly 100% of net profit attributable to shareholders.

Financial highlights

• Gross profit increased 8.4% YoY to HK$187.0 million, alongside higher revenue and a HK$4.0 million reversal of inventory write-downs; FY2023 included a HK$4.7 million inventory write-down.

• Profit before tax fell 57.9% YoY to HK$24.0 million; profit for the year declined to HK$17.4 million from HK$46.1 million.

• Other income and gains decreased 80.6% YoY to HK$9.1 million, mainly due to no repeat of HK$38.8 million in FY2023 property disposal gains; fair value loss on investment property also weighed on profit.

Outlook and guidance

• IT Infrastructure is expected to sustain growth on demand for cloud computing, cybersecurity, enterprise software and network equipment; planned investments will support the segment.

• CD and CEP performance is expected to remain weak in the short term; a dynamic product and brand portfolio and prudent inventory management remain priorities.