Tak Lee Machinery (2102.HK) Q2 2025 Earnings Report

Tak Lee Machinery Holdings Limited delivered a solid QQ2 2025 performance with revenue of HKD 75.73 million, up modestly year-over-year (YoY) and exhibiting a strong sequential rebound (QoQ) driven by stronger activity in heavy equipment sales and leasing. Gross profit of HKD 18.76 million yielded a gross margin of approximately 24.8%, contributing to EBITDA of HKD 17.14 million and operating income of HKD 8.48 million, while net income reached HKD 7.00 million (EPS HKD 0.007). The quarter also underscored robust cash flow generation, with net cash provided by operating activities of HKD 25.07 million and free cash flow of HKD 25.07 million, supporting a net cash position of HKD 102.45 million after dividend payments of HKD 7.50 million. Financial health remains favorable, underpinned by a very strong liquidity profile (current ratio 11.40, quick ratio 6.50, cash ratio 3.77) and a low debt burden (total debt HKD 3.41 million; net debt negative HKD 102.45 million). The balance sheet shows ample cash and manageable current liabilities, with a high level of working capital tied to inventory and receivables in the equipment sales/lease cycle. Value metrics indicate the stock trades at a modest multiple (P/E ~4.9x, P/BV ~0.31x) with a dividend yield of around 5.4%, appealing to income-oriented investors despite the company’s relatively small scale in the broader industrials landscape. Given the absence of an earnings call transcript in the provided data, management commentary is drawn from the public filings and reported figures. The company’s near-term trajectory will hinge on fleet utilization, service mix, and repayment/lease activity within the Hong Kong market, alongside potential expansion initiatives.”