Technovator International (1206.HK) Q4 2024 Earnings Report

Technovator International reported Q4 2024 revenue of 658.33 million CNY, up 3.2% year-over-year, underscoring modest topline growth in a challenging hardware and energy-management market. Despite a slight revenue lift, gross profit rose only to 44.55 million CNY, yielding a gross margin of 6.77%, while operating losses deepened to 105.50 million CNY and net losses to 98.18 million CNY. EPS declined to -0.13 CNY, and EBITDA remained negative at -86.60 million CNY, highlighting persistent profitability headwinds even as the company stabilizes its revenue base. The balance sheet shows a robust cash position (cash and cash equivalents of 344.69 million CNY) with relatively modest leverage (total debt 348.50 million CNY; net debt 3.82 million CNY). However, working capital dynamics are subdued by a long receivables cycle (days sales outstanding ~356 days) and a sizeable accounts receivable burden (2.60 billion CNY) versus current liabilities of 2.89 billion CNY. Liquidity remains adequate on a current ratio of 1.56 and quick ratio of 1.09, but cash conversion efficiency is a material risk given the extended operating cycle. Looking ahead, management commentary is not available in the provided transcript data, restricting insight into strategic pivots or guidance. In absence of explicit forward targets, the investment case hinges on potential margin recovery and better working-capital discipline, complemented by the company’s multi-segment exposure to Smart Transportation, Smart Buildings, and Smart Energy. Valuation metrics imply a very low starting point (P/B around 0.076x, P/S around 0.301x), which could reflect elevated execution risk and negative earnings, rather than a pure optionality on a structural rebound in China’s hardware/energy-management markets.