HIGHWAY HOLDINGS REPORTS SECOND QUARTER FISCAL YEAR 2025 RESULTS
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction – HIHO
On the day this news was published, HIHO gained 4.28%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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?
