Kelfred Holdings Limited (1134.HK) Q3 2024 Earnings Report

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.