Truly International (732) H2 2024 earnings summary

Executive summary

• Revenue rose 14.4% year-over-year to HK$17.84 billion, driven by increased smartphone-related sales in the PRC.

• Profit attributable to owners increased 14.9% to HK$302 million, with EPS up 15% to 9.56 HK cents.

• Gross profit margin declined to 7.8% from 8.5% due to higher revenue from lower-margin smartphone products.

• The Group increased its equity interest in Truly RS from 17.14% to 29.69%, enhancing influence and supply stability.

• No assets were pledged and no material contingent liabilities existed at year-end.

Financial highlights

• Revenue: HK$17,840 million (up 14.4% YoY).

• Gross profit: HK$1,386 million (up 4.8% YoY).

• Profit attributable to owners: HK$302 million (up 14.9% YoY).

• EBITDA: HK$1,977 million (down 3.9% YoY).

• Basic EPS: 9.56 HK cents (up 15% YoY).

• Final dividend proposed: 5 HK cents per share; total annual dividend: 10 HK cents per share (payout ratio ~105%).

Outlook and guidance

• Management expects moderate growth in 2025 amid global economic uncertainty and industry challenges.

• Focus remains on display modules and diversification into automotive, industrial, medical, and IoT sectors.

• Continued investment in R&D and automation to enhance competitiveness and product quality.