Summary by Moomoo AI
Reitar Logtech Holdings reported significant revenue growth but declining profitability for FY2024. Revenue surged 198.2% YoY to HK$252.0M, primarily driven by its construction management and engineering design segment, which contributed 91.7% of total revenue. However, net income decreased 69.2% YoY to HK$19.6M, while gross profit margin contracted to 25.4% from 28.9% in FY2023.The company maintains a strong project pipeline with contract backlog of HK$1,036.7M, despite facing operational challenges. Operating expenses increased 139.3% YoY to HK$35.9M as the company expanded its operations. Management has discontinued the subleasing business in FY2023 to focus on core operations, with no dividends declared for both FY2023 and FY2024.Notable risk factors include high concentration in both suppliers and customers, with two subcontractors accounting for 37.7% of payables and two customers contributing 79.7% of revenue. The company also faces geographic concentration risk in Hong Kong, along with exposure to interest rate and foreign currency fluctuations, particularly in USD.
