Time Interconnect Technology (1729) investor relations material

Executive summary

• Revenue surged 68.0% year-over-year to HK$12,409.6 million, driven by strong growth in server and data centre sectors, despite global economic uncertainty and new tariffs impacting some segments.

• Net profit rose 69.0% to HK$783.6 million, with adjusted profit at HK$787.7 million, maintaining a net profit margin of 6.3% year-over-year.

• Major acquisitions included DJC Group (copper wire) and investment in a UK-based wearable robotics startup, enhancing vertical integration and product diversification.

• The company expanded its global footprint through the acquisition of Leoni Kable via Time Singapore, strengthening its presence in the cable industry.

Financial highlights

• Gross profit increased 35.6% to HK$1,468.8 million, but gross margin declined from 14.7% to 11.8% due to higher server sector revenue with lower margins.

• EBITDA rose 64.3% to HK$1,187.2 million; adjusted EBITDA margin slightly decreased to 9.6%.

• Operating profit grew 44.4% to HK$907.8 million, with operating margin dropping to 7.3%.

• Cash generated from operations was HK$804.2 million, down 29.2% year-over-year.

• Shareholders’ funds increased 76.1% to HK$2,826.8 million.

Outlook and guidance

• Global growth is projected to slow, with risks from policy uncertainty, protectionism, and supply chain disruptions.

• AI-driven demand is expected to continue boosting server and data centre businesses.

• The company plans to leverage recent acquisitions and alliances to expand globally and diversify its business portfolio.