SP International Holding (1695.HK) Q2 2025 Earnings Report

SP International Holding Limited (1695.HK) delivered a robust QQ2 2025 performance anchored by a sharp year-over-year revenue surge and solid profitability. Revenue rose to MYR 72.74 million, up 150.1% YoY, supported by strong demand for coconut-based products and an expanding mix of coconut cream, milk, and associated consumer packaged foods. Gross profit reached MYR 15.07 million, yielding a gross margin of 20.72%, while EBITDA stood at MYR 8.64 million and operating income at MYR 8.94 million, translating to EBITDA and operating margins of roughly 11.87% and 12.28%, respectively. Net income was MYR 8.08 million with a net margin of 11.11% and an EPS of MYR 0.0074 for the quarter.

The balance sheet exhibits healthy liquidity, with a current ratio of 2.48 and a quick ratio of 1.44, underscoring the company’s ability to navigate near-term working capital needs. The cash conversion cycle extended to approximately 66.7 days driven by a longer inventory cycle (DIO ~49.7 days) while days sales outstanding (DSO) were ~34.2 days and days payable outstanding (DPO) ~17.1 days. Leverage remains limited, with a debt ratio of 13.3% and debt-to-capitalization at 15.5%, reflecting a conservative capital structure.

From a cash flow perspective, operating cash flow per share was MYR 0.00106, and free cash flow per share was negative MYR 0.00113, consistent with a working-capital-intensive, growth-oriented packaging and distribution business. The company did not declare a dividend in QQ2 2025 (dividend payout ratio 0). Valuation metrics imply the stock trades at modest multiples (P/S ~0.72x, P/E ~1.6x, EV/EBITDA ~7.4x), suggesting a potential gap between market price and the durable earnings power embedded in the current growth trajectory.

Note: There is no earnings call transcript provided for QQ2 2025 in the data source; as a result, transcript-based quotes are not available. The assessment relies on reported quarterly figures and near-term industry dynamics to form the forward view.