MTT Group Holdings (2350) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 0.3% YoY to HK$630.2m; net loss narrowed 31.3% to HK$10.3m. Basic loss per share improved to HK$1.65 cents from HK$2.40 cents.

• SI solutions growth offset lower distribution revenue, but gross margin contracted amid weak conditions and competitive pricing.

Financial highlights

• Gross profit fell 13.5% YoY to HK$61.4m; gross margin declined to 9.7% from 11.3%.

• Cost of sales and services rose 2.1% to HK$568.8m; selling and distribution expenses fell 26.5% to HK$26.6m, while administrative expenses rose 8.4% to HK$37.4m.

• ECL impairment losses decreased to HK$4.5m from HK$14.3m; finance costs were HK$3.7m, broadly unchanged YoY.

• FY25 loss before tax was HK$10.0m; tax expense was HK$0.3m, versus a HK$1.8m tax credit in FY24.

Outlook and guidance

• Cloud adoption, data-centre investment, hyper-converged infrastructure and AI server demand are identified as growth opportunities.

• IT talent shortages may raise staff costs; weaker Hong Kong retail investment could constrain system upgrades and profitability.

• Workforce expansion for SI solutions is delayed by limited talent supply; remaining proceeds are expected to be used by 31 March 2026.