HIGHWAY HOLDINGS REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS
Highway Holdings (Nasdaq: HIHO) reported strong results for the second quarter of fiscal year 2025, with revenue growth of 60.1% and gross profit growth of 117.8% year-over-year. The company's Q2 FY2025 gross profit was $834,000, with a gross profit margin of 39.4%. Despite the positive results, the company cautioned that net income comparisons may not accurately reflect progress due to a reversal of bad debt provisions in the previous year. Highway Holdings maintains a strong financial position with over $5.6 million in cash and a net cash positive position. The company is optimistic about future growth, citing an upcoming motor project and potential new ventures.
Highway Holdings (Nasdaq: HIHO) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con una crescita del fatturato del 60,1% e una crescita del profitto lordo del 117,8% rispetto all'anno precedente. Il profitto lordo del secondo trimestre FY2025 dell'azienda è stato di 834.000 dollari, con un margine di profitto lordo del 39,4%. Nonostante i risultati positivi, l'azienda ha avvertito che i confronti sul reddito netto potrebbero non riflettere accuratamente i progressi a causa di un'inversione delle svalutazioni per crediti inesigibili nell'anno precedente. Highway Holdings mantiene una posizione finanziaria solida con oltre 5,6 milioni di dollari in liquidità e una posizione di cassa netta positiva. L'azienda è ottimista riguardo alla crescita futura, citando un imminente progetto automobilistico e potenziali nuove iniziative.
Highway Holdings (Nasdaq: HIHO) reportó resultados sólidos para el segundo trimestre del año fiscal 2025, con un crecimiento de ingresos del 60,1% y un crecimiento de ganancias brutas del 117,8% interanual. Las ganancias brutas del segundo trimestre del año fiscal 2025 de la compañía fueron de 834.000 dólares, con un margen de ganancia bruta del 39,4%. A pesar de los resultados positivos, la empresa advirtió que las comparaciones de ingresos netos pueden no reflejar con precisión el progreso debido a una reversión de las provisiones por deudas incobrables del año anterior. Highway Holdings mantiene una posición financiera sólida con más de 5,6 millones de dólares en efectivo y una posición de efectivo neto positiva. La empresa es optimista sobre el crecimiento futuro, citando un próximo proyecto automovilístico y posibles nuevas iniciativas.
하이웨이 홀딩스(Nasdaq: HIHO)는 2025 회계 연도 2분기에 강력한 실적을 보고했으며, 매출 성장률이 60.1%, 총 이익 성장률이 117.8%를 기록했습니다. 2025 회계 연도 2분기 회사의 총 이익은 834,000 달러였으며, 총 이익률은 39.4%입니다. 긍정적인 결과에도 불구하고, 회사는 지난해의 부실채권 충당금을 반영하였기 때문에 순이익 비교가 정확한 진행 상황을 반영하지 않을 수 있다고 경고했습니다. 하이웨이 홀딩스는 560만 달러 이상의 현금을 보유하고 있는 강력한 재정적 위치를 유지하고 있으며, 순 현금도 긍정적인 상태입니다. 회사는 향후 성장에 대해 낙관적이며, 다가오는 자동차 프로젝트와 잠재적인 신규 사업을 언급하고 있습니다.
Highway Holdings (Nasdaq: HIHO) a annoncé des résultats solides pour le deuxième trimestre de l'exercice 2025, avec une croissance du chiffre d'affaires de 60,1% et une croissance du bénéfice brut de 117,8% par rapport à l'année précédente. Le bénéfice brut du 2e trimestre de l'exercice 2025 de l'entreprise était de 834 000 dollars, avec une marge bénéficiaire brute de 39,4%. Malgré ces résultats positifs, l'entreprise a averti que les comparaisons de revenu net pourraient ne pas refléter avec précision le progrès, en raison d'une inversion des provisions pour créances douteuses de l'année précédente. Highway Holdings maintient une position financière solide avec plus de 5,6 millions de dollars en liquide et une position de liquidités nette positive. L'entreprise est optimiste quant à la croissance future, mentionnant un projet automobile à venir et des projets potentiels.
Highway Holdings (Nasdaq: HIHO) hat im zweiten Quartal des Geschäftsjahres 2025 starke Ergebnisse gemeldet, mit einem Umsatzwachstum von 60,1% und einem Wachstum des Bruttoertrags von 117,8% im Jahresvergleich. Der Bruttoertrag des Unternehmens im 2. Quartal FY2025 betrug 834.000 US-Dollar, mit einer Bruttomarge von 39,4%. Trotz der positiven Ergebnisse warnte das Unternehmen, dass Vergleiche des Nettogewinns den Fortschritt möglicherweise nicht genau widerspiegeln, da im Vorjahr eine Umkehrung von Rückstellungen für uneinbringliche Forderungen stattfand. Highway Holdings weist eine starke Finanzlage auf, mit über 5,6 Millionen US-Dollar in bar und einer positiven Netto-Cash-Position. Das Unternehmen ist optimistisch bezüglich des zukünftigen Wachstums und nennt ein bevorstehendes Motorenprojekt sowie potenzielle neue Unternehmungen.
- 60.1% year-over-year increase in Q2 FY2025 revenue
- 117.8% year-over-year increase in Q2 FY2025 gross profit
- Gross profit margin improved to 39.4% in Q2 FY2025 from 29.0% in the previous year
- $5.6 million in cash and cash equivalents, equivalent to $1.28 per diluted share
- New motor project expected to start production in Q3 FY2025
- Interest income of $58,000 in Q2 FY2025 due to increased interest rates
- Selling, general and administrative expenses increased to $724,000 from $272,000 in Q2 FY2025
- Business still below pre-COVID levels
- Uncertain macro environment affecting customer orders due to global conflicts
Insights
Highway Holdings' Q2 FY2025 results show significant improvements, with revenue up 60.1% and gross profit up 117.8% year-over-year. The company's gross margin expanded from 29.0% to 39.4%, indicating better operational efficiency. However, net income comparisons are skewed due to a bad debt provision reversal in the previous year.
The balance sheet remains robust with
While the company is showing signs of recovery, it's still below pre-COVID levels. The upcoming motor project starting in Q3 FY2025 could be a significant growth driver. Investors should monitor the ramp-up of this new business line and its impact on future quarters' performance.
Highway Holdings is navigating a complex market environment. The company's recovery is evident, but external factors like the Russia/Ukraine war and Middle East conflicts continue to impact customer orders. This highlights the company's sensitivity to global geopolitical events.
The 60.1% revenue growth suggests improving demand, but it's important to note that this is compared to a low base during the pandemic. The company's cautious optimism about coming through the worst part of the business cycle aligns with broader market trends of gradual recovery in manufacturing sectors.
The new motor project represents a potential diversification of revenue streams, which could help mitigate risks associated with existing product lines. Investors should watch for the successful implementation of this project and its contribution to overall revenue in the coming quarters. The company's exploration of "numerous possible ventures" also indicates a proactive approach to growth, which could positively impact long-term value creation.
60.1% Year Over Year Increase in Second Quarter Revenue117.8% Year Over Year Increase in Second Quarter Gross Profit- Cash and Cash Equivalents of
$1.28
Roland Kohl, chairman, president and chief executive officer of Highway Holdings, noted, "While the positive results reflect an improving environment at our customers, we still have a lot of ground to make up to return to our normalized pre-COVID business level. The rebound continues but has been slowed by the uncertain macro environment, following the fallout of COVID, as orders for customer products have been adversely impacted by the
Mr. Kohl concluded, "We are cautiously optimistic that we have come through the worst part of this low business cycle. Even with our existing products still experiencing below normal levels of demand, we are coming online shortly with the new motor project we previously announced. Production is expected to start in the fiscal third quarter of 2025 and should ramp up in the fiscal fourth quarter of 2025. As a result, if our core existing business remains stable or improves slightly, the positive impact of the additional new business will help drive a further improvement in results. Our company is financially very healthy with over
Select Additional Financial Results:
Gross profit for the second quarter of fiscal year 2025 was
Selling, general and administrative expenses for the second quarter of fiscal year 2025 increased to
Net income for the second quarter of fiscal year 2025 reflects a currency exchange gain of
The Company had interest income of approximately
The Company's balance sheet remains strong, with total assets of
About Highway Holdings Limited
Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon,
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.
(Financial Tables Follow)
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||
Consolidated Statement of Income | ||||||||||
(Dollars in thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
September 30, | September 30, | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
Net sales | ||||||||||
Cost of sales | 1,283 | 939 | 2,501 | 1,909 | ||||||
Gross profit | 834 | 383 | 1,495 | 760 | ||||||
Selling, general and administrative expenses | 724 | 272 | 1,382 | 1,049 | ||||||
Operating income/(loss) | 110 | 111 | 113 | (289) | ||||||
Non-operating items | ||||||||||
Exchange gain /(loss), net | 58 | 14 | 96 | 31 | ||||||
Interest income | 58 | 53 | 103 | 93 | ||||||
Gain/(Loss) on disposal of assets | - | 13 | - | 13 | ||||||
Other income/(expenses) | 5 | 6 | 12 | 6 | ||||||
Total non-operating income/ (expenses) | 121 | 86 | 211 | 143 | ||||||
Net income before income tax and non-controlling interests | 231 | 197 | 324 | (146) | ||||||
Income taxes | 0 | 3 | 0 | 6 | ||||||
Net income before non-controlling interests | 231 | 200 | 324 | (140) | ||||||
Less: net gain attributable to non-controlling interests | 0 | (13) | (5) | (15) | ||||||
Net income/(loss) attributable to Highway Holdings Limited's shareholders |
231 |
213 |
329 |
(125) | ||||||
Net Gain/ (loss) per share – Basic
| ||||||||||
Net Gain/ (loss) per share - Diluted |
|
| ||||||||
Weighted average number of shares outstanding | ||||||||||
Basic | 4,402 | 4,219 | 4,379 | 4,345 | ||||||
Diluted |
4,402 |
4,235 |
4,379 |
4,345 | ||||||
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES | |||
Consolidated Balance Sheet | |||
(Dollars in thousands, except per share data) | |||
(unaudited) Sept 30, | (audited) Mar 31, | ||
2024 | 2024 | ||
Current assets: | |||
Cash and cash equivalents | |||
Accounts receivable, net of doubtful accounts | 1,982 | 1,253 | |
Inventories | 1,785 | 1,566 | |
Prepaid expenses and other current assets | 156 | 226 | |
Total current assets | 9,537 | 9,646 | |
Property, plant and equipment, (net) | 64 | - | |
Operating lease right-of-use assets | 1,142 | 1,375 | |
Long-term deposits | 206 | 202 | |
Long-term loan receivable | 95 | 95 | |
Investments in equity method investees | - | - | |
Total assets | |||
Current liabilities: | |||
Accounts payable | |||
Operating lease liabilities, current | 621 | 588 | |
Other liabilities and accrued expenses | 1,559 | 1,789 | |
Income tax payable | 484 | 480 | |
Dividend payable | 45 | 45 | |
Total current liabilities | 3,730 | 3,837 | |
Long term liabilities : | |||
Operating lease liabilities, non-current | 507 | 803 | |
Long terms accrued expenses | 40 | 40 | |
Total liabilities | 4,277 | 4,680 | |
Shareholders' equity: | |||
Preferred shares, | - | - | |
Common shares, | 44 | 44 | |
Additional paid-in capital | 12,159 | 12,117 | |
Accumulated deficit | (4,908) | (5,015) | |
Accumulated other comprehensive income/(loss) | (516) | (501) | |
Non-controlling interest | (12) | (7) | |
Total shareholders' equity | 6,767 | 6,638 | |
Total liabilities and shareholders' equity | |||
View original content:https://www.prnewswire.com/news-releases/highway-holdings-reports-second-quarter-fiscal-year-2025-results-302273357.html
SOURCE Highway Holdings Limited
FAQ
What was Highway Holdings' (HIHO) revenue growth in Q2 FY2025?
How much cash does Highway Holdings (HIHO) have as of September 30, 2024?
What is Highway Holdings' (HIHO) gross profit margin for Q2 FY2025?
When is Highway Holdings (HIHO) expected to start production on its new motor project?
