MTT Group Holdings (2350) H2 2024 earnings summary

Executive summary

• FY2024 revenue declined 16.5% YoY to HK$628.1m; net loss was HK$15.0m versus net profit of HK$43.7m in FY2023, with basic loss per share of HK2.40 cents.

• Lower CDN licence sales, weaker SI solutions demand, compressed gross margins and higher expected credit loss charges drove the deterioration.

Financial highlights

• Revenue was HK$628.1m, down 16.5% YoY; gross profit fell 44.0% to HK$71.0m.

• Net loss was HK$15.0m versus net profit of HK$43.7m; total comprehensive expense was HK$15.3m versus income of HK$43.4m.

• Basic EPS was a loss of HK2.40 cents versus earnings of HK7.75 cents in FY2023.

• Cost of sales and services declined 11.0% to HK$557.1m, broadly in line with lower revenue; overall gross margin fell to 11.3% from 16.8%.

• Expected credit loss charges rose to HK$14.3m from HK$2.9m, including an additional HK$9.0m impairment for a debtor facing financial difficulties and voluntary liquidation.

Outlook and guidance

• Long-term opportunities include continued cloud migration, data-centre investment and demand for HCI, AI servers and AI storage in Hong Kong.

• High interest rates and cautious enterprise spending may lengthen investment decisions and slow sales; no numerical financial guidance was stated.