Luxking Group (BKK) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 11.7% to RMB553.5 million, and net profit was RMB10.3 million versus a RMB0.9 million loss in FY2023.

• Gross margin improved to 15.4% from 12.1%, supported by sales mix, no FY2023-level inventory write-down impact, and cost efficiencies from in-house production.

Financial highlights

• Revenue was RMB553.5 million versus RMB495.8 million in FY2023; gross profit rose 42.1% to RMB85.3 million.

• Profit before tax increased to RMB15.2 million from RMB1.0 million; net profit was RMB10.3 million versus a RMB0.9 million loss.

• Basic and diluted EPS was RMB0.8166 versus a loss per share of RMB0.0719.

Outlook and guidance

• FY2025 outlook is cautious amid uncertain economic conditions, higher operating and raw material costs, soft global demand, and geopolitical-related supply disruptions.

• BOPP films demand is expected to remain soft; production mix of standard and high-end films will be adjusted to market demand.

• IS tapes and General tapes conditions are expected to resemble the slower second half of FY2024; customised products, customer development, R&D, and efficiency remain priorities.

• Hubei IS tapes trial production is targeted for 1H FY2025; about RMB9.5 million is earmarked for warehouses and supporting equipment.