Executive Summary
NetaGo Technology reported QQ1 2025 revenue of HKD 90.35 million, up 71.4% year over year, accompanied by meaningful margin expansion and a positive net income outcome. Gross profit reached HKD 16.72 million with a gross margin of 18.51%, while operating income was HKD 10.47 million and EBITDA HKD 21.87 million, yielding an operating margin of 11.59% and an EBITDA margin of 24.20%. Net income totaled HKD 23.77 million, delivering a net margin of 26.31% and an EPS of HKD 0.0152, reflecting a multiyear improvement versus prior periods. The quarter also showcased a robust balance sheet with a net cash position (net debt of -HKD 194.1 million), HKD 430.94 million in cash and short-term investments, and modest leverage (debt to equity ~0.38). Liquidity metrics remained solid (current ratio ~1.28; quick ratio ~1.28; cash ratio ~0.62). However, the business exhibits a stretched receivables cycle (days sales outstanding ~241 days) and a long cash conversion cycle (~194 days), underscoring working-capital sensitivity and potential liquidity watchpoints if receivables collection remains extended. The quarter’s YoY earnings strength contrasts with a QoQ decline in revenue, indicating a capacity build in scale and profitability that warrants monitoring of execution momentum and working-capital efficiency going forward. Valuation remained premium relative to peers (P/S ~19.2x; P/B ~5.0x; P/E ~18.3x), reflecting growth expectations and a cash-rich balance sheet, but investors should balance this with the elevated operating-cycle risk and competitive dynamics in the waste-management landscape.
Key Performance Indicators
QoQ: 751.73% | YoY:341.09%
QoQ: 126.08% | YoY:494.05%
QoQ: 361.90% | YoY:1 088.05%
QoQ: 162.04% | YoY:708.00%
Key Insights
Revenue: HKD 90,348,500 (+71.40% YoY; -4.54% QoQ). Gross Profit: HKD 16,719,500; Gross Margin: 18.51% (YoY +341.09%; QoQ +751.73%). Operating Income: HKD 10,470,000; Operating Margin: 11.59% (YoY +494.05%; QoQ +126.08%). EBITDA: HKD 21,868,000; EBITDA Margin: 24.20%. Net Income: HKD 23,767,500; Net Margin: 26.31% (YoY +1,088%; QoQ +361.90%). EPS: HKD 0.0152; EPS Diluted: HKD 0.0152 (YoY +708%; QoQ +162%). Balance Sheet Highlights: Cash and cash equivalents HKD 324,702,000; Total cash and short-t...
Financial Highlights
Revenue: HKD 90,348,500 (+71.40% YoY; -4.54% QoQ). Gross Profit: HKD 16,719,500; Gross Margin: 18.51% (YoY +341.09%; QoQ +751.73%). Operating Income: HKD 10,470,000; Operating Margin: 11.59% (YoY +494.05%; QoQ +126.08%). EBITDA: HKD 21,868,000; EBITDA Margin: 24.20%. Net Income: HKD 23,767,500; Net Margin: 26.31% (YoY +1,088%; QoQ +361.90%). EPS: HKD 0.0152; EPS Diluted: HKD 0.0152 (YoY +708%; QoQ +162%). Balance Sheet Highlights: Cash and cash equivalents HKD 324,702,000; Total cash and short-term investments HKD 430,936,000; Total assets HKD 982,232,000; Total liabilities HKD 609,172,000; Total stockholders’ equity HKD 346,746,000; Net debt = -HKD 194,094,000. Liquidity: Current ratio 1.284; Quick ratio 1.281; Cash ratio 0.618. Operating metrics: DSO 240.84 days; DIO 1.944 days; Payables Outstanding 48.91 days; CCC 193.87 days. Valuation: Price to Book 5.01x; Price to Sales 19.23x; Price to Earnings 18.27x; Enterprise Value Multiple 70.56x. Revenue mix and growth drivers likely reflect ongoing domestic Hong Kong and Mainland China environmental services expansion, though the quarter’s receivables cycle introduces working-capital risk that warrants close monitoring.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
90.35M |
71.40% |
-4.54% |
| Gross Profit |
16.72M |
341.09% |
751.73% |
| Operating Income |
10.47M |
494.05% |
126.08% |
| Net Income |
23.77M |
1 088.05% |
361.90% |
| EPS |
0.02 |
708.00% |
162.04% |
Key Financial Ratios
operatingProfitMargin
11.6%
Management Commentary
Note: The provided data includes an earnings transcript field that is empty. Consequently, there are no management quotes or thematic quotes to cite for QQ1 2025. As a result, transcriptHighlights reflect a gap in the supplied call material rather than content from management discussion. If a transcript becomes available, quotes can be added under clear themes (Strategy, Operations, Market Conditions) with contextual significance.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the QQ1 2025 results, the company demonstrated stronger top-line growth and margin progression, supported by a substantial cash position. In lieu of stated targets, the forward look should be anchored to qualitative considerations: (1) revenue trajectory as contracts mature and new wins contribute to scale, (2) margin discipline as the company leverages scale in its waste-management and facility-services mix, and (3) working-capital efficiency to address the elevated DSO. Investors should monitor receivables collection trends, integration progress of Mainland operations, potential regulatory developments affecting waste-services pricing, and the evolution of capital expenditure needs relative to maintenance and contract renewal cycles.