Time Interconnect Technology (1729) H2 2024 earnings summary

Executive summary

• Revenue rose 53.1% year-over-year to HK$7,388.8 million, driven by strong growth in medical equipment, data centre, networking cable, specialty cable, and server sectors.

• Net profit increased 62.3% to HK$450.5 million, with net profit margin improving from 5.8% to 6.1%.

• Adjusted profit (excluding acquisition-related items) was HK$452.6 million, up 63.0% year-over-year.

• EBITDA grew 40.8% to HK$710.6 million, though EBITDA margin declined to 9.6% from 10.5%.

• Final dividend of HK1.3 cents per share proposed, total dividend for the year at HK2.3 cents per share.

Financial highlights

• Gross profit increased 58.6% to HK$1,078.6 million, with gross margin rising to 14.6%.

• Operating profit rose 43.9% to HK$623.6 million; operating margin slightly decreased to 8.4%.

• Cash generated from operations was HK$1,135.2 million, up 7.5%.

• Bank balances and cash stood at HK$425.8 million, a 26.0% increase.

• Shareholders’ funds grew 29.8% to HK$1,766.2 million.

• Gearing ratio improved to 33.5% from 55.3% due to reduced bank loans.

Outlook and guidance

• Management remains confident despite macroeconomic and geopolitical uncertainties, citing strong support from the parent group and ongoing strategic business development.

• Global growth is forecast at 3.3% for 2025 and 2026, but risks from policy shifts, inflation, and geopolitical tensions remain.

• Continued focus on expanding in telecommunication, automotive, data centre, and medical equipment sectors, with new investments and joint ventures planned.