Kelfred Holdings Limited (1134.HK) Q4 2024 Earnings Report

Kelfred Holdings Limited posted QQ4 2024 revenue of HKD 128.084m, up 29.3% year-over-year, driven by stronger demand for eyewear products and OEM manufacturing activities. However, the quarter delivered a negative operating result of HKD -3.909m and a net loss of HKD -4.691m, underscoring ongoing investments and cost pressures that subdued profitability despite top-line growth. Gross margin stood at 10.49% (HKD 13.439m gross profit on revenue), reflecting a relatively modest profitability profile for a hardware-intensive eyewear producer in a competitive market.

The company generated positive operating cash flow of HKD 7.886m and free cash flow of HKD 5.971m, supported by a cash balance of HKD 27.813m and a net debt position of HKD -15.252m. The balance sheet remains robust with total assets of HKD 282.928m, total liabilities of HKD 126.494m, and total equity of HKD 156.434m. Liquidity metrics are healthy (current ratio 2.04, quick ratio 1.31), while working capital movements (notably higher receivables and inventories) consumed cash during parts of the year. Notably, accumulated other comprehensive income stands sizable at HKD 151.434m, contributing meaningfully to equity and warranting further disclosure in follow-on filings.

In the absence of formal earnings-call transcripts in the provided data, management commentary and forward-looking guidance could not be quoted or analyzed. Based on the quantitative results and prevailing industry dynamics, the investment thesis hinges on the ability to translate revenue growth into sustained profitability, tighter cost control, and capitalization on OEM/multibrand opportunities. Relative to peers, Kelfred demonstrates a stronger liquidity profile, but profitability remains a near-term hurdle that investors should monitor closely.