LK Technology (558) H2 2024 earnings summary

Executive summary

• Revenue for FY2024 was HK$5,837.4 million, down 1.0% year-over-year, with stable gross and net profit margins at 27.2% and 8.9%, respectively.

• Net profit for the year was HK$517.7 million, a 2.7% decrease compared to FY2023, but second-half net profit grew 52.3% over the first half.

• Total assets increased 27.7% to HK$10,905.8 million, and cash and cash equivalents rose to HK$2,375.2 million.

• The company maintained strong risk resilience and market adaptability amid challenging macroeconomic conditions.

Financial highlights

• Operating profit was HK$658.8 million, down 2.8% year-over-year; operating margin was 11.3%.

• Basic and diluted EPS were HK35.3 cents, an 8.8% decrease from last year.

• Net current assets rose 172.4% to HK$3,475.3 million; cash and cash equivalents increased 292.4%.

• Net assets grew 4.2% to HK$4,016.1 million.

• Final dividend proposed at HK5 cents per share, up from HK4.5 cents last year.

Outlook and guidance

• The company expects policy-driven demand for equipment renewal and green transformation to boost future sales, especially in plastic injection moulding and die-casting machines.

• Expansion of overseas production bases and sales centers in Mexico, India, and North America aims to enhance global service capabilities.

• Continued focus on R&D and innovation to maintain competitiveness and capture new energy vehicle and energy storage market opportunities.