UBoT (8529) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 13.7% YoY to HK$163.1m; gross profit declined to HK$56.2m and the year ended with a HK$23.2m net loss, versus HK$5.0m profit in FY2023.

• Weaker tray and MEMS sales, lower production activity and fixed manufacturing overheads pressured margins; HK$9.8m of listing expenses also contributed to the reported loss.

Financial highlights

• Revenue was HK$163.1m, down 13.7% YoY; cost of sales decreased 8.6% to HK$106.9m.

• Gross profit fell 21.9% to HK$56.2m; gross margin declined to 34.5% from 38.1% as lower production left fixed manufacturing overheads less absorbed.

• Net loss attributable to owners was HK$23.2m versus net income of HK$5.0m; loss before listing expenses was HK$12.1m, compared with profit before listing expenses of HK$11.9m in FY2023.

• Basic and diluted loss per share was HK5.1 cents, versus earnings per share of HK1.3 cents in FY2023.

Outlook and guidance

• IMF projections cited in the outlook indicate global growth of 3.3% in 2025–2026; China growth is projected at 4.6% in 2025 and 4.5% in 2026.

• The Philippines manufacturing facility began operating in early 2025; plans include expanding from carrier tape into tray and tray-related products.

• Strategy prioritizes deeper China market penetration, new product manufacturing capabilities and overseas expansion, including additional overseas sales points and investment in high-growth markets.