SP International Holding (1695.HK) Q4 2024 Earnings Report

SP International Holding Limited reported a resilient QQ4 2024 performance, underscoring a positive trajectory in revenue and profitability driven by a stronger product mix and ongoing demand for coconut-based products. For the quarter ended 2024-12-31, revenue reached MYR 29.08 million, up 29.8% versus the prior-year quarter, with gross profit of MYR 8.06 million and a gross margin of 27.7%. EBITDA stood at MYR 6.91 million and net income at MYR 3.06 million, delivering a net margin of 10.5% and an EPS of MYR 0.0028. The company generated operating cash flow of MYR 2.72 million and free cash flow of MYR 3.65 million, supported by disciplined capital expenditure of MYR 0.93 million. Balance-sheet metrics show a sturdy asset base and modest leverage, with total assets of MYR 172.12 million and total stockholders’ equity of MYR 126.72 million, and net debt of MYR (8.06) million. Current liquidity remains healthy (current ratio 2.74; quick ratio 1.55), but working capital characteristics warrant attention given elevated inventory and receivables levels. Management commentary on the earnings call is not available in the provided data, hence the analysis relies on reported numbers and industry context. The outlook implies continued focus on earnings quality, working capital optimization, and selective growth in coconut-based consumer products. Investor takeaway: SP International shows attractive margins, positive cash generation and conservative leverage, yet inventory discipline and margin sustainability in a competitive coconut-based foods landscape are key risk factors to monitor. In summary, the QQ4 2024 results reinforce SP International’s ability to translate top-line growth into earnings and cash flow, while maintaining a strong balance sheet. The stock’s valuation metrics (P/S ~2.50, P/BV ~0.57, P/E ~5.9) suggest a relatively inexpensive setup for a niche packaged foods producer with global reach, albeit with execution risk around working capital and competitive dynamics in the coconut category.