Executive Summary
Kelfred Holdings Limited reported QQ3 2024 revenue of HKD 128.08 million, up 29.0% year over year and 29.8% sequentially, underscoring continued demand for its eyewear product lines and ODM/OEM capabilities. Gross profit reached HKD 13.44 million, yielding a gross margin of 10.49%, while the company posted an operating loss of HKD 3.91 million and a net loss of HKD 4.69 million. The results reflect elevated selling, general and administrative expenses (SG&A) of HKD 20.51 million that outweighed the gross profit improvement and drove EBITDA to negative HKD 2.27 million. Free cash flow was positive at HKD 5.97 million on the back of HKD 7.89 million of operating cash flow, although cash burn from working capital changes contributed to a negative net change in cash of HKD 18.64 million for the quarter. The balance sheet shows total assets of HKD 282.93 million and total stockholders’ equity of HKD 156.43 million, with the firm carrying a net cash position of HKD 15.25 million and a strong liquidity buffer. While revenue momentum appears encouraging, the near-term profitability trajectory remains a key investment risk until operating leverage from scale and margin discipline materialize.
Key Performance Indicators
QoQ: 23.41% | YoY:-135.67%
QoQ: 22.95% | YoY:-135.00%
Key Insights
Revenue: HKD 128,084,499; YoY +29.25%, QoQ +29.76%; Gross Profit: HKD 13,438,499; Gross Margin 10.49% (YoY gross profit +13.3%, QoQ +51.1%); EBITDA: HKD -2,268,000; EBITDA Margin -1.77%; Operating Income: HKD -3,909,000; Operating Margin -3.05%; Net Income: HKD -4,691,000; Net Margin -3.66%; EPS: HKD -0.0094; Weighted Avg Shares: 500,000,000; Cash Flow: Operating Cash Flow HKD 7,886,000; Free Cash Flow HKD 5,971,500; Capex HKD 1,914,500; Net Change in Cash: HKD -18,642,000; Cash & Equivalent...
Financial Highlights
Revenue: HKD 128,084,499; YoY +29.25%, QoQ +29.76%; Gross Profit: HKD 13,438,499; Gross Margin 10.49% (YoY gross profit +13.3%, QoQ +51.1%); EBITDA: HKD -2,268,000; EBITDA Margin -1.77%; Operating Income: HKD -3,909,000; Operating Margin -3.05%; Net Income: HKD -4,691,000; Net Margin -3.66%; EPS: HKD -0.0094; Weighted Avg Shares: 500,000,000; Cash Flow: Operating Cash Flow HKD 7,886,000; Free Cash Flow HKD 5,971,500; Capex HKD 1,914,500; Net Change in Cash: HKD -18,642,000; Cash & Equivalents: HKD 27,813,000; Total Assets: HKD 282,928,000; Total Liabilities: HKD 126,494,000; Total Equity: HKD 156,434,000; Net Debt: HKD -15,252,000; DSO 82.05 days; DIO 67.36 days; CCC 149.41 days; Quick/Current Ratios: 1.307/2.04; Cash Conversion Cycle 77.84 days; P/B 0.895; P/E -7.46; EV Multiple -55.00; Gross Margin 10.49%; Operating Margin -3.05%; Net Margin -3.66%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
128.08M |
29.25% |
29.76% |
| Gross Profit |
13.44M |
13.30% |
51.10% |
| Operating Income |
-3.91M |
44.74% |
32.83% |
| Net Income |
-4.69M |
-135.67% |
23.41% |
| EPS |
-0.01 |
-135.00% |
22.95% |
Key Financial Ratios
operatingProfitMargin
-3.05%
Management Commentary
No QQ3 2024 earnings call transcript was provided in the data, so management quotes could not be extracted. In the absence of direct quotes, themes relevant to investors would include: strategy execution around the Miga brand and ODM/OEM growth, potential operating leverage as revenue scales, and ongoing cost discipline. Key items investors should monitor if/when a call is available include commentary on gross margin trajectory, SG&A efficiency, product mix shifts toward higher-margin lines, and updates on international market expansion. In lieu of a transcript, the analysis relies on disclosed financials and peer context to infer potential directional signals.
Transcript unavailable for QQ3 2024; no quote provided.
— N/A
Transcript unavailable for QQ3 2024; no quote provided.
— N/A
Forward Guidance
The company did not publish formal forward guidance for QQ4 2024 or beyond in the QQ3 release. In a qualitative assessment, the outlook hinges on: (1) sustaining topline momentum from ODM/OEM and the Miga brand, (2) achieving meaningful gross margin expansion through product mix and procurement efficiency, and (3) achieving operating leverage via SG&A containment as fixed costs scale. Risks include competitive pricing pressure in eyewear, raw material and FX volatility, and continued investment in brand-building and distribution. Our view is that a path to profitability and stronger cash flow is contingent on margin improvement and continued revenue growth; a two-quarter window of sustained positive operating cash flow and a move toward breakeven operating income would be a meaningful inflection for investors.