QQ2 2023 (period ended 2023-09-30) delivered a sharp QoQ revenue decline for CCSC Technology International Holdings Limited (CCTG), with revenue falling to $0.958 million from $3.752 million in Q1 2023. Despite a negative operating margin of -3.79% in QQ2, the company posted a positive net income of $52.8 thousand driven by a substantial contribution from total other income (-$80.1 thousand negating the tax benefit) and a favorable pre-tax result. EBITDA stood at $90.5 thousand, yielding an EBITDA margin of about 9.45%. The strong liquidity metrics (current ratio 2.90, quick ratio 2.45, cash ratio 1.65) underpin balance sheet resilience even as operating profitability remains modest. The disconnect between operating performance and net income is primarily due to non-operating items which significantly influenced the bottom line. Management commentary from the QQ2 earnings call is not available in the provided transcript data, limiting direct insight into forward-looking guidance. From a valuation perspective, the stock exhibits ultra-high price multiples (P/E ~414.6x, P/S ~91.4x) despite a small-scale, volatile quarterly revenue base, underscoring the importance of close attention to order visibility, program wins, and cost control going forward.
Key Performance Indicators
Revenue
Stable
958.11K
QoQ: N/A | YoY: N/A
Gross Profit
Stable
291.18K
30.39% margin
QoQ: N/A | YoY: N/A
Operating Income
Stable
-36.33K
QoQ: N/A | YoY: N/A
Net Income
Stable
52.81K
QoQ: N/A | YoY: N/A
EPS
Stable
0.00
QoQ: N/A | YoY: N/A
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue (QQ2 2023): $958,111; QoQ vs Q1 2023: -74.5% (from $3,751,760)
- Gross Profit: $291,176; Gross Margin: 30.39% (0.304)
- Operating Income: -$36,330; Operating Margin: -3.79%
- EBITDA: $90,506; EBITDA Margin: 9.45% (EBITDA / Revenue)
- Net Income: $52,813; Net Margin: 5.51%
- Income Before Tax: $43,766; Pretax Margin: 4.57%
- Income Tax Benefit: -$9,046.84 (tax expense, i.e., tax benefit)
- Earnings per Share (basic and diluted): $0.0046; Weighted Avg Shares: 11.375 million
- Liquidity: Current Ratio 2.90; Quick Ratio 2.45; Cash Ratio 1.65
- Cash Flow: Operating Cash Flow per Share $0.00222; Free Cash Flow per Share $0.00142; Cash per Share $0.0828
- Leverage: Debt Ratio 0.664; Debt/Equity 1.024; Total Debt to Capitalization 0.506; Long-Term Debt to Capitalization 0.496
- Efficiency: Receivables Turnover 2.19x; Inventory Turnover 2.64x; Asset Turnover 0.454; Fixed Asset Turnover 3.88x
- Valuation (as of QQ2 2023): P/B 64.11x; P/E 414.61x; P/S 91.42x; P/FCF 5,420x; Dividend Yield 0%
- Dividend Payout: 0%
Income Statement
Metric
Value
YoY Change
QoQ Change
Key Financial Ratios
Gross Profit Margin
Fair
30.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.04%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
5.51%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.50%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.87%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.90
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
1.02
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
414.61x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
64.11x
Very high premium suggests asset-light business model or lofty expectations
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