LK Technology (558) H2 2025 earnings summary

Executive summary

• Revenue for the year ended 31 March 2025 was HK$5,824.9 million, nearly flat year-over-year, with a slight decrease of 0.2%.

• Gross profit increased marginally by 0.6% to HK$1,597.2 million, with gross margin up to 27.4%.

• Net profit declined 22.2% year-over-year to HK$403.0 million, with net margin at 6.9%.

• The die-casting segment contributed 66.4% of revenue, plastic injection moulding 30.2%, and CNC machining 3.4%.

• The group maintained operational resilience amid a complex market, with strong growth in Southeast Asia and product innovation.

Financial highlights

• Operating profit dropped 18.7% to HK$535.7 million, with margin down to 9.2%.

• Basic and diluted EPS fell 27.2% to HK25.7 cents.

• Cash and cash equivalents decreased 34.3% to HK$1,560.3 million.

• Total assets rose 9.2% to HK$11,914.3 million; net assets up 2.5% to HK$4,116.6 million.

• Net cash outflow from operating activities was HK$224.8 million, with a net decrease in cash of HK$802.0 million.

Outlook and guidance

• The group will continue to leverage technological innovation and a dual-pronged R&D strategy to address market trends and customer needs.

• Focus remains on expanding global market reach, especially in Southeast Asia, and deepening partnerships with OEMs.

• Plans to further develop magnesium alloy and integrated die-casting technologies for automotive and 3C sectors.