Tak Lee Machinery Holdings Limited reported QQ1 2025 revenue of HKD 75.73 million, delivering a gross profit of HKD 18.76 million and a net income of HKD 7.00 million. The quarter shows a robust year-over-year improvement in demand and profitability metrics, underpinned by a high gross margin of 24.76% and an operating margin of 11.20%, with EBITDA of HKD 17.14 million. However, quarterly results were seasonally depressed relative to the prior quarter, with revenue down 48.4% QoQ from HKD 146.75 million in Q4 2024, reflecting the cyclical nature of heavy equipment sales and leasing in the Hong Kong market. The company generated HKD 25.07 million of operating cash flow and free cash flow, and maintained a strong liquidity profile with a net cash position of approximately HKD 102.45 million after accounting for debt, dividends, and financing activities. Management guidance was not issued in the disclosed materials; investors should monitor fleet utilization, lease demand, and fleet renewal cycles going forward. Valuation remains conservative by traditional metrics, with a price-to-earnings ratio around 5.2x and a price-to-book of ~0.33x, complemented by a dividend yield near 5.2%.*