SU Group Holdings Limited (SUGP) Q4 2024 Earnings Report

SU Group Holdings Limited reported QQ4 2024 revenue of HKD 45.16 million, with gross profit of HKD 10.49 million and a gross margin of 23.23%. Net income registered HKD 264,809, translating to an earnings per share of HKD 0.0195 and a net margin of ~0.59%. YoY comparisons show meaningful pressure on profitability: revenue declined by 1.66% year-over-year, gross profit fell approx. 21.16% YoY, and operating income and net income dropped by approximately 94.68% and 94.77% respectively, with the per-share metric down roughly 95%. QoQ changes are reported as flat in the provided data. The quarter’s performance reflects a lean operating structure with an operating margin of 0.61% and an EBITDA of HKD 0.75 million, underscoring limited operating leverage in a low-margin services mix.

Notably, the balance sheet remains exceptionally healthy on a liquidity basis: cash and cash equivalents stood at HKD 52.34 million, and total liabilities were HKD 59.36 million against total assets of HKD 157.08 million, yielding a net cash position of HKD (45.04) million. The company carries modest leverage (debt of HKD 7.30 million; debt to equity roughly 7.5%), and a robust current ratio of 2.54x, quick ratio of 1.65x, and cash ratio close to 1x, indicating strong short-term liquidity. Deferred revenue of HKD 27.80 million in current liabilities suggests a sizable portion of cash has been collected in advance from customers, which may reverse into revenue in subsequent periods if earned. While the top-line softness and material margin compression raise questions about near-term profitability, the balance sheet provides capacity for selective investments, working-capital optimization, or shareholder-friendly actions should management choose to redeploy excess liquidity.

Given the absence of formal management guidance in the provided data and no earnings call transcript data, the investment outlook hinges on the durability of the revenue base, potential improvements in cost control, and any strategic initiatives to expand into higher-margin segments or geographies. Investors should monitor revenue trajectory, cadence of deferred revenue realization, and the conversion of liquidity into profitable growth over the next several quarters.