Tsit Wing International reported a robust QQ2 2025 (calendar year 2025) performance characterized by strong top-line growth and margin stability. Revenue reached HKD 380.4 million, up 104.7% year over year, with gross profit of HKD 115.9 million and a gross margin of 30.46%. Operating income stood at HKD 29.66 million and EBITDA at HKD 40.08 million, yielding an EBITDA margin of 10.54% and an operating margin of 7.80%. Net income was HKD 24.86 million, translating to a net margin of 6.54% and an EPS of HKD 0.0344, up about 116% YoY. These results reflect a significantly larger base in Q2 2025 versus the prior-year period, with a largely stable cost structure and continued efficiency in selling, general, and administrative expenses.
The balance sheet remains solid, highlighted by a current ratio of 2.99 and a quick ratio of 1.74, underscoring ample short-term liquidity against modest leverage (debt ratio ~3.92%, debt to equity ~5.29%). Cash flow indicators show positive operating cash flow per share (HKD 0.0126) but negative free cash flow per share (HKD -0.00494) due to capital expenditure running ahead of depreciation, suggesting continued investment in capacity or capability upgrades. The company also offers a dividend yield of approximately 3.79% with a payout ratio around 62.6%, providing visible income support to shareholders while balancing capex needs.
Compared with peers in the Beverages Non-Alcoholic/Consumer Defensive space, Tsit Wing trades at a modest multiple (P/E ~4.1, P/S ~1.1, P/B ~0.79) with a relatively stable margin profile, though some peers exhibit higher gross margins and differing capital expenditure dynamics. The combination of strong YoY growth, stable margins, and prudent leverage supports a cautiously constructive investment stance, contingent on continued revenue mix evolution, cost discipline, and favorable commodity/currency dynamics.