WK Group (Holdings) (2535) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 7.6% to HK$398.5m and attributable profit increased 25.0% to HK$31.5m; gross margin eased to 17.9%.

• 22 projects were on hand at year-end, with backlog of HK$322.1m versus HK$550.5m a year earlier.

Financial highlights

• Revenue increased HK$28.2m YoY to HK$398.5m, driven by higher work performed on sizable commercial and infrastructure projects.

• Gross profit was HK$71.4m versus HK$71.1m; cost of services rose 9.3% to HK$327.1m.

• Operating profit was HK$39.6m versus HK$34.1m; profit before tax was HK$39.6m versus HK$33.7m.

• Attributable profit rose to HK$31.5m from HK$25.2m; basic and diluted EPS remained HK1.7 cents.

• Listing expenses were HK$4.8m versus HK$16.0m in 2023, contributing to the increase in annual profit.

Outlook and guidance

• Tendering more contracts, potentially at lower gross margins, is intended to sustain revenue and cash flow and optimise workforce utilisation.

• Competitive pricing and cost controls remain priorities; directors are cautiously optimistic about Hong Kong structural steelwork.