Time Interconnect Technology (1729) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 1.5% year-over-year to HK$2,666.1 million, driven by strong growth in medical equipment, data centre, specialty, and networking cable sectors.

• Net profit increased 34.3% to HK$203.2 million, with adjusted profit up 35.2% to HK$204.5 million, reflecting improved product mix and higher margins.

• Gross profit margin improved to 18.4% from 15.4%, and net profit margin rose to 7.6% from 5.8% year-over-year.

• Interim dividend of HK1 cent per share declared, totaling approximately HK$19.5 million.

Financial highlights

• Gross profit increased 21.0% to HK$490.2 million; operating profit up 31.5% to HK$309.2 million.

• EBITDA rose 22.7% to HK$347.8 million; adjusted EBITDA margin improved to 13.1%.

• Basic earnings per share was HK10.4 cents, up from HK7.8 cents; adjusted EPS at HK10.5 cents.

• Shareholders’ funds increased 13.8% to HK$1,549.1 million; cash and bank balances surged 177.9% to HK$939.2 million.

• Gearing ratio decreased to 39.1% from 55.1% at year-end 2023.

Outlook and guidance

• Management remains confident despite macroeconomic challenges, citing support from Luxshare Group and strategic expansion in 5G, automotive, and medical sectors.

• New plant in Mexico to commence production in H2 2024, supporting the “China-Plus-One” strategy and diversification.

• Continued focus on R&D, digital infrastructure, and capturing opportunities in electric vehicles, AI, and 5G markets.

• Medical equipment sector poised for further expansion, supported by acquisitions and R&D investments.