SU Group Holdings Limited (SUGP) reported QQ1 2024 results characterized by solid profitability metrics amid a modest revenue stride. Revenue for the quarter was HKD 45.92 million, with gross profit of HKD 13.31 million and an EBITDA of HKD 5.99 million, translating to EBITDA margin of roughly 13.05% and an operating margin of 11.30%. Net income amounted to HKD 5.06 million, delivering a net margin of about 11.02% and an earnings per share (EPS) of HKD 0.41 based on weighted average shares of 12.46 million. The company maintains a robust balance sheet, with total assets of HKD 153.19 million and total stockholders’ equity of HKD 90.59 million. Notably, cash and cash equivalents stood at HKD 47.22 million, leaving a net cash position after modest debt of roughly HKD 45–46 million, underscoring strong liquidity and optionality for capital deployment.
On a year-over-year basis, QQ1 2024 revenue declined versus the prior-year quarter (approx. HKD 48.52 million in QQ1 2023 to HKD 45.92 million in QQ1 2024, around -5% YoY), while net income rose modestly (HKD 5.06 million vs HKD ~4.999 million in QQ1 2023), and net margins held steady in the low to mid-teens. Margins expanded modestly versus prior-year levels, aided by stable cost control within a mid-single-digit SG&A footprint and a relatively low cost base for their engineering and guard services. The working capital profile shows a meaningful inventory cushion and receivables exposure, contributing to a long cash conversion cycle (CCC) of about 170 days, suggesting potential for optimization in inventory and receivables management.
Overall, the QQ1 2024 print supports a cautiously constructive investment view: the business generates solid cash flow and maintains a strong balance sheet, but near-term top-line growth visibility appears muted. The company’s leverage is minimal, and the cash balance provides optionality for strategic initiatives such as selective capacity expansion, equipment modernization, or selective M&A. Investors should monitor demand dynamics in Hong Kong and key international markets, competitive intensity, and any sign of margin expansion through efficiency improvements.