Kelfred Holdings Limited (1134.HK) Q2 2025 Earnings Report

QQ2 2025 presents a mixed but constructive setup for Kelfred. The revenue growth trajectory (+89.35% YoY) demonstrates strong top-line momentum, likely anchored by its ODM/OEM capabilities and international exposure. However, profitability remains a work-in-progress, with a net loss and a negative operating margin that reflect the current cost structure relative to revenue. The balance sheet remains robust with ample liquidity and negative net debt, suggesting capacity to fund expansion and capability upgrades without added leverage. Relative to peers, Kelfred trades with a modest P/B of approximately 0.62 and a P/S of about 0.40, signaling the market may be pricing in near-term profitability risks while pricing in future scale and margin expansion potential. The absence of formal guidance adds to uncertainty, but the company’s cash flow generation and potential for margin improvements through scale and mix optimization imply upside if operating leverage improves. Key factors for investors to monitor include: (i) quarterly progression toward positive operating income and higher EBITDA margins, (ii) efficiency gains in SG&A as revenue scales, (iii) progress in new market entries and product lines, and (iv) any updates to guidance or strategic roadmap from management.