SU Group Holdings Reports 11% Revenue Growth For Fiscal Year 2024
SU Group Holdings (NASDAQ: SUGP) reported strong financial results for fiscal year 2024, with revenue increasing 11.3% to HK$182.2 million (US$23.4 million) and net income growing 8.7% to HK$10.7 million (US$1.4 million). The security-related engineering services segment saw a 9.0% revenue increase to HK$107.0 million.
However, gross profit decreased slightly by 0.9% to HK$47.6 million, with gross profit margin declining to 26.1% from 29.3% in FY2023. The company's balance sheet showed improvements with trade receivables decreasing 37.5% to HK$21.9 million and cash and cash equivalents reaching HK$52.3 million. Working capital stood at approximately HK$82.1 million as of September 30, 2024.
SU Group Holdings (NASDAQ: SUGP) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un aumento del fatturato dell'11,3% a HK$182,2 milioni (US$23,4 milioni) e un netto in crescita dell'8,7% a HK$10,7 milioni (US$1,4 milioni). Il segmento dei servizi di ingegneria legati alla sicurezza ha registrato un aumento del fatturato del 9,0% a HK$107,0 milioni.
Tuttavia, il profitto lordo è diminuito leggermente dello 0,9% a HK$47,6 milioni, con un margine di profitto lordo in calo al 26,1% rispetto al 29,3% dell'anno fiscale 2023. Il bilancio della società ha mostrato miglioramenti, con i crediti commerciali in diminuzione del 37,5% a HK$21,9 milioni e liquidità e equivalenti di liquidità che hanno raggiunto HK$52,3 milioni. Il capitale circolante si attestava a circa HK$82,1 milioni al 30 settembre 2024.
SU Group Holdings (NASDAQ: SUGP) reportó resultados financieros sólidos para el año fiscal 2024, con un aumento del ingreso del 11.3% a HK$182.2 millones (US$23.4 millones) y un crecimiento del ingreso neto del 8.7% a HK$10.7 millones (US$1.4 millones). El segmento de servicios de ingeniería relacionados con la seguridad vio un aumento del ingreso del 9.0% a HK$107.0 millones.
Sin embargo, el beneficio bruto disminuyó ligeramente un 0.9% a HK$47.6 millones, con el margen de beneficio bruto cayendo al 26.1% desde el 29.3% en el año fiscal 2023. El balance de la empresa mostró mejoras, con cuentas por cobrar comerciales disminuyendo un 37.5% a HK$21.9 millones y efectivo y equivalentes de efectivo alcanzando HK$52.3 millones. El capital de trabajo se situó en aproximadamente HK$82.1 millones al 30 de septiembre de 2024.
SU Group Holdings (NASDAQ: SUGP)는 2024 회계연도에 대한 강력한 재무 결과를 보고했으며, 수익은 11.3% 증가하여 HK$182.2 백만(US$23.4 백만)에 이르고, 순이익은 8.7% 증가하여 HK$10.7 백만(US$1.4 백만)으로 성장하였습니다. 보안 관련 엔지니어링 서비스 부문에서는 수익이 9.0% 증가하여 HK$107.0 백만에 도달했습니다.
하지만, 총 이익은 0.9% 소폭 감소하여 HK$47.6 백만이 되었고, 총 이익률은 2023 회계연도의 29.3%에서 26.1%로 감소했습니다. 회사의 대차대조표는 개선된 모습을 보였으며, 매출채권이 37.5% 감소하여 HK$21.9 백만이 되었고, 현금 및 현금성 자산은 HK$52.3 백만에 도달했습니다. 2024년 9월 30일 기준으로 운전 자본은 약 HK$82.1 백만으로 집계되었습니다.
SU Group Holdings (NASDAQ: SUGP) a annoncé de solides résultats financiers pour l'exercice fiscal 2024, avec un chiffre d'affaires en augmentation de 11,3 % pour atteindre HK$182,2 millions (US$23,4 millions) et un revenu net en hausse de 8,7 % à HK$10,7 millions (US$1,4 millions). Le segment des services d'ingénierie liés à la sécurité a connu une augmentation de 9,0 % de son chiffre d'affaires, atteignant HK$107,0 millions.
Cependant, le bénéfice brut a légèrement diminué de 0,9 % à HK$47,6 millions, avec une marge de bénéfice brut qui est passée de 29,3 % en 2023 à 26,1 %. Le bilan de l'entreprise a montré des améliorations, avec une baisse des créances commerciales de 37,5 % à HK$21,9 millions et des liquidités et équivalents de liquidités atteignant HK$52,3 millions. Le fonds de roulement s'élevait à environ HK$82,1 millions au 30 septembre 2024.
SU Group Holdings (NASDAQ: SUGP) berichtete für das Geschäftsjahr 2024 von starken finanziellen Ergebnissen, die einen Umsatz von 11,3 % auf HK$182,2 Millionen (US$23,4 Millionen) und einen Nettogewinn von 8,7 % auf HK$10,7 Millionen (US$1,4 Millionen) verzeichnen konnten. Der Bereich der sicherheitsbezogenen Ingenieurdienstleistungen verzeichnete einen Umsatzanstieg von 9,0 % auf HK$107,0 Millionen.
Der Bruttogewinn ging jedoch leicht um 0,9 % auf HK$47,6 Millionen zurück, während die Bruttogewinnmarge von 29,3 % im Geschäftsjahr 2023 auf 26,1 % fiel. Die Bilanz des Unternehmens zeigte Verbesserungen, wobei die Forderungen aus Lieferungen und Leistungen um 37,5 % auf HK$21,9 Millionen sanken und die liquiden Mittel HK$52,3 Millionen erreichten. Das Betriebskapital betrug zum 30. September 2024 etwa HK$82,1 Millionen.
- Revenue growth of 11.3% YoY to HK$182.2M
- Net income increase of 8.7% YoY to HK$10.7M
- Security engineering services revenue up 9.0% to HK$107.0M
- 37.5% reduction in trade receivables indicating improved collections
- Strong cash position with HK$52.3M in cash and equivalents
- Gross profit declined 0.9% YoY to HK$47.6M
- Gross profit margin decreased to 26.1% from 29.3%
- Increased cost of revenues by 16.4%
- Equipment leasing profit margin dropped to 64.6% from 73.9%
- Rising labor costs impacting security guarding services margins
Insights
The FY2024 results reveal a complex financial picture for SU Group Holdings. While the 11.3% revenue growth to
Several key metrics warrant attention:
- The 37.5% reduction in trade receivables coupled with improved payables management indicates enhanced working capital efficiency, though this may be partially offset by a 16.4% increase in inventory to
HK$47.6M - Operating cash flow swung from negative
HK$13.5M to positiveHK$14.1M , a remarkable improvement in cash generation efficiency - The security-related engineering services segment, contributing
58.7% of revenue, saw margin compression from36.4% to32.1% , suggesting increased competitive pressures
The company's strategic positioning in AI-aided security solutions and expansion into new geographic markets could provide future growth catalysts. However, the rising inventory levels amid margin pressure requires careful monitoring, as it could impact cash flow if project execution delays materialize.
The operational performance metrics reveal both achievements and challenges in FY2024. The successful implementation of credit collection activities led to a 37.5% reduction in receivables, significantly improving cash flow efficiency. However, the 16.4% inventory increase warrants attention, particularly as it coincides with margin compression.
Critical operational insights:
- Equipment rental services maintained relatively high margins at
64.6% , though down from73.9% , suggesting potential for optimization in asset utilization - The stable
15.1% margin in security guarding services, despite rising labor costs, indicates effective cost management strategies - Capital expenditure increased by
128.6% , focusing on equipment and software infrastructure, signaling commitment to technological advancement
The company's investment in AI-aided security solutions positions it well for operational scalability, though careful management of working capital will be important as the company pursues geographic expansion while maintaining service quality.
8.7% Increase in Net Income Year over Year- Strengthened Balance Sheet to Support Growth Initiatives
Select Financial Highlights:
- For the fiscal year ended September 30, 2024, SU Group reported an
11.3% increase in revenue on a year over year basis, led by growth in the security-related engineering services business, which increased9.0% on a year over year basis. - Net income increased by
8.7% on a year over year basis to HK$10.7 million (US ) for the fiscal year ended September 30, 2024, with net income per share (basic and diluted) increasing to$1.4 million HK from$0.82 HK on a year over year basis.$0.81
SU Group's Chairman and CEO, Dave Chan, commented, "We are driving consistent revenue growth and business expansion as we build on our strong competitive position. Our successful initial public offering on the Nasdaq market helped fortify our balance sheet and is allowing us to accelerate strategic investments that will ensure our long-term success, including hiring additional security experts and investing in advanced security technologies like our proven AI-aided security solutions. Our specialized focus and ability to closely support customers can be seen in several landmark wins we have announced, including our support of one
SU Group's Chief Financial Officer, Calvin Kong, noted, "We drove a near
SU Group Holdings Limited (Nasdaq: SUGP) provides security-related engineering services and security guarding and screening services:
- Security-related engineering services: The Company offers security-related engineering services to customers, including providing (i) security systems and products, provision of installation, and related maintenance services; (ii) security systems and products only; or (iii) maintenance services only. In addition, SU Group provides equipment rental services to its customers with use of dedicated security-related systems and equipment for contractual periods.
- Security guarding and screening services: The Company provides security guarding services, by dispatching security guards with corresponding abilities and qualifications on demand, to fulfill the customers' needs such as securing and guarding physical properties by, among other things, conducting patrols, entrance guarding, access control and alarm monitoring and response such as fire and gas detection, burglary detection and emergency management such as first aid service and communication and evacuation. SU Group also offers security guarding services targeted at crowd coordination and management, and provides security screening services, where its certified screeners work to detect of explosives, incendiary devices in air cargo consignment and dangerous goods for safety purpose through the operation of threat detection systems. In addition, the Company provides a variety of related vocational training courses.
Financial Results for the Fiscal Year Ended September 30, 2024
Revenues increased by
Cost of revenues increased by
Gross profit decreased slightly by
Gross profit margin was
Selling, general and administrative expenses decreased by
Losses on the disposal of property and equipment were
Our other income decreased by
Income tax expenses decreased by
Net income increased by
Trade receivables, net decreased by
Trade payables decreased by
Inventories increased by
Capital expenditures were
For the fiscal year ended September 30, 2024, net cash provided by operating activities was
The Company had a balance of cash and cash equivalents of
About SU Group Holdings Limited
SU Group (Nasdaq: SUGP) is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong. Through its subsidiaries, SU Group has been providing turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems for over two decades. The security systems that SU Group provides services include threat detection systems, traffic and pedestrian control systems, and extra-low voltage systems in private and public sectors, including commercial properties, public facilities, and residential properties in
Forward-Looking Statements
Certain statements in this press release are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "we believe," "we intend," "may," "should," "will," "could" and similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to renew contracts with recurring customers; the Company's ability to secure new contracts; the Company's ability to accurately estimate risks and costs and perform contracts based on the Company's estimates; the Company's relationship with the Company's suppliers and ability to manage quality issues of the systems; the Company's ability to obtain or renew the Company's registrations, licenses, and certificates; the Company's ability to manage the Company's subcontractors; the labor costs and the general condition of the labor market; the Company's ability to compete effectively; the Company's ability to successfully manage the Company's capacity expansion and allocation in response to changing industry and market conditions; implementation of the Company's expansion plans and the Company's ability to obtain capital resources for planned growth; the Company's ability to acquire sufficient products and obtain equipment and services from the Company's suppliers in suitable quantity and quality; the Company's dependence on key personnel; the Company's ability to expand into new businesses, industries, or internationally and to undertake mergers, acquisitions, investments, or divestments; changes in technology and competing products; general economic and political conditions, including those related to the security-related engineering services industry; possible disruptions in commercial activities caused by events such as natural disasters, terrorist activities, political, economic, and social instability, and fluctuations in foreign currency exchange rates, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the "SEC"), including the Company's most recently filed Annual Report on Form 20-F and its subsequent filings. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
(Financial Tables Follow)
SU GROUP HOLDINGS LIMITED | ||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
For the Years Ended September 30, | ||||||||||||||
2023 | 2024 | 2024 | ||||||||||||
HK$ | HK$ | US$ | ||||||||||||
Revenues | 163,690,966 | 182,164,539 | 23,434,647 | |||||||||||
Cost of revenues | (115,648,013) | (134,568,099) | (17,311,579) | |||||||||||
Gross profit | 48,042,953 | 47,596,440 | 6,123,068 | |||||||||||
Operating expenses | ||||||||||||||
Selling, general and administrative expenses | (36,805,428) | (36,028,548) | (4,634,910) | |||||||||||
Losses on disposal of property and equipment | (485,957) | (636,289) | (81,856) | |||||||||||
Income from operations | 10,751,568 | 10,931,603 | 1,406,302 | |||||||||||
Other income (expenses) | ||||||||||||||
Other income | 1,445,506 | 1,219,376 | 156,867 | |||||||||||
Finance expenses | (55,080) | (189,749) | (24,410) | |||||||||||
Other expenses | — | — | — | |||||||||||
Total other income, net | 1,390,426 | 1,029,627 | 132,457 | |||||||||||
Income before income tax expenses | 12,141,994 | 11,961,230 | 1,538,759 | |||||||||||
Income tax expenses | (2,338,850) | (1,307,742) | (168,235) | |||||||||||
Net income | 9,803,144 | 10,653,488 | 1,370,524 | |||||||||||
Less: Net income attributable to non-controlling interests | (105,775) | — | — | |||||||||||
Net income attributable to SU Group Holdings Limited's ordinary shareholders | 9,697,369 | 10,653,488 | 1,370,524 | |||||||||||
Net income per share | ||||||||||||||
Basic and diluted | 0.81 | 0.82 | 0.11 | |||||||||||
Weighted average number of shares | ||||||||||||||
Basic and diluted | 12,000,000 | 13,027,752 | 13,027,752 | |||||||||||
SU GROUP HOLDINGS LIMITED | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
As of September 30, | ||||||||||||
2023 | 2024 | 2024 | ||||||||||
HK$ | HK$ | US$ | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 16,400,123 | 52,338,132 | 6,733,065 | |||||||||
Trade receivables, net | 34,978,153 | 21,851,480 | 2,811,094 | |||||||||
Inventories | 40,919,214 | 47,613,381 | 6,125,247 | |||||||||
Prepaid expenses and other current assets | 1,590,259 | 5,013,876 | 645,011 | |||||||||
Contract assets, net | 3,187,403 | 6,443,947 | 828,985 | |||||||||
Prepaid income tax | — | 2,066,219 | 265,810 | |||||||||
Total current assets | 97,075,152 | 135,327,035 | 17,409,212 | |||||||||
Non-current assets | ||||||||||||
Property and equipment, net | 8,405,563 | 8,886,235 | 1,143,174 | |||||||||
Intangible assets, net | 144,879 | 268,500 | 34,541 | |||||||||
Goodwill | 1,271,160 | 1,271,160 | 163,529 | |||||||||
Prepaid expenses and other non-current assets | — | 4,462,823 | 574,122 | |||||||||
Deferred offering expenses | 3,853,500 | — | — | |||||||||
Operating lease right-of-use assets, net | 1,113,926 | 5,496,985 | 707,162 | |||||||||
Investment in key management insurance policy | 1,157,520 | 1,157,520 | 148,910 | |||||||||
Deferred tax assets | 1,418,419 | 207,702 | 26,720 | |||||||||
Total non-current assets | 17,364,967 | 21,750,925 | 2,798,158 | |||||||||
TOTAL ASSETS | 114,440,119 | 157,077,960 | 20,207,370 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Trade payables | 16,104,581 | 8,625,685 | 1,109,655 | |||||||||
Notes payables | 3,503,768 | 2,355,023 | 302,963 | |||||||||
Other payables | 2,633,447 | 3,499,507 | 450,196 | |||||||||
Accrued payroll and welfare | 8,228,964 | 9,040,942 | 1,163,076 | |||||||||
Operating lease liabilities – current | 204,156 | 1,935,187 | 248,953 | |||||||||
Income tax payable | 1,058,040 | — | — | |||||||||
Contract liabilities | 22,748,443 | 27,801,257 | 3,576,506 | |||||||||
Total current liabilities | 54,481,399 | 53,257,601 | 6,851,349 | |||||||||
Non-current liabilities | ||||||||||||
Operating lease liabilities – non-current | 61,229 | 3,004,974 | 386,576 | |||||||||
Other payables – non-current | 996,069 | 1,340,016 | 172,387 | |||||||||
Deferred tax liabilities | 1,468,575 | 431,717 | 55,538 | |||||||||
Other liabilities | 1,008,306 | 1,321,956 | 170,064 | |||||||||
Total non-current liabilities | 3,534,179 | 6,098,663 | 784,565 | |||||||||
Total liabilities | 58,015,578 | 59,356,264 | 7,635,914 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholders' Equity | ||||||||||||
Ordinary shares (par value of | 120,000 | 136,475 | 17,557 | |||||||||
Shares subscription receivables | (119,990) | (90) | (12) | |||||||||
Additional paid-in capital | 14,642,029 | 46,260,499 | 5,951,205 | |||||||||
Retained earnings | 41,782,502 | 51,324,812 | 6,602,706 | |||||||||
Total SU Group Holdings Limited shareholders' equity and total shareholders' equity | 56,424,541 | 97,721,696 | 12,571,456 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 114,440,119 | 157,077,960 | 20,207,370 | |||||||||
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SOURCE SU Group Holdings Limited
FAQ
What was SUGP's revenue growth in fiscal year 2024?
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