NetaGo Technology Company (1483.HK) Q1 2025 Earnings Report

NetaGo Technology reported QQ1 2025 revenue of HKD 90.35 million, up 71.4% year over year, accompanied by meaningful margin expansion and a positive net income outcome. Gross profit reached HKD 16.72 million with a gross margin of 18.51%, while operating income was HKD 10.47 million and EBITDA HKD 21.87 million, yielding an operating margin of 11.59% and an EBITDA margin of 24.20%. Net income totaled HKD 23.77 million, delivering a net margin of 26.31% and an EPS of HKD 0.0152, reflecting a multiyear improvement versus prior periods. The quarter also showcased a robust balance sheet with a net cash position (net debt of -HKD 194.1 million), HKD 430.94 million in cash and short-term investments, and modest leverage (debt to equity ~0.38). Liquidity metrics remained solid (current ratio ~1.28; quick ratio ~1.28; cash ratio ~0.62). However, the business exhibits a stretched receivables cycle (days sales outstanding ~241 days) and a long cash conversion cycle (~194 days), underscoring working-capital sensitivity and potential liquidity watchpoints if receivables collection remains extended. The quarter’s YoY earnings strength contrasts with a QoQ decline in revenue, indicating a capacity build in scale and profitability that warrants monitoring of execution momentum and working-capital efficiency going forward. Valuation remained premium relative to peers (P/S ~19.2x; P/B ~5.0x; P/E ~18.3x), reflecting growth expectations and a cash-rich balance sheet, but investors should balance this with the elevated operating-cycle risk and competitive dynamics in the waste-management landscape.