The revenue and earnings growth are strong, but the negative operating cash flow and EPS dilution from the follow-on offering create a mixed picture. Monitor the next quarter's cash conversion cycle and accounts receivable settlement to confirm the sustainability of the service business model. The June 2026 direct offering adds further dilution risk.
Price Chart
Executive Summary
Raytech reported fiscal year 2026 revenue of HK$142.6M (US$18.2M), up 81.1% YoY, and net income of HK$16.7M (US$2.1M), up 101.9% YoY, driven by new service businesses (31% of revenue) and 26.2% product sales growth. However, EPS fell to HK$7.19 from HK$7.60 (retroactively restated) due to share dilution from a follow-on offering, and operating cash flow was negative HK$14.5M on receivables build-up.
Key Financial Metrics
Key Facts
- Revenue increased 81.1% to HK$142.6M (US$18.2M) in FY2026 from HK$78.7M in FY2025.
- Net income increased 101.9% to HK$16.7M (US$2.1M), with net margin improving to 11.7% from 10.5%.
- Service income from two new subsidiaries contributed HK$44.2M (31.0% of total revenue).
- Basic and diluted EPS fell to HK$7.19 from HK$7.60 (retroactively restated for 1:16 share consolidation), reflecting share dilution from a July 2025 follow-on offering.
- Operating cash flow was negative HK$14.5M (US$1.85M) due to accounts receivable build-up from new service businesses.
- Cash and cash equivalents were HK$78.0M (US$10.0M) as of March 31, 2026, down from HK$84.9M a year earlier.
- A June 2026 registered direct offering raised net proceeds of approximately US$6.08 million.
Financial Impact
Revenue +81.1% YoY to HK$142.6M; net income +101.9% to HK$16.7M; EPS -5.4% to HK$7.19; operating cash flow -HK$14.5M
Risk Factors
- Negative operating cash flow of HK$14.5M driven by receivables build-up from new service businesses.
- EPS declined despite higher net income due to share dilution from follow-on offerings.
- Micro-cap with $18M market cap — high volatility and low liquidity.
- Reliance on new service businesses (31% of revenue) with limited operating history.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3339388 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 8w ago | 6-K | $2.70 | awaiting T+20 | — | — |
Aug 5, 2026 11w ago | Press Release | $2.92 $2.65 | ▼ −9.25% | ▼ −8.65% | — |
Jul 31, 2026 12w ago | 20-F | $3.00 $2.70 | ▼ −10.00% | ▼ −11.24% | — |
Jun 29, 2026 17w ago | 6-K | $2.88 $2.89 | ▼ −0.35% | ▼ −1.38% | — |
Jun 29, 2026 17w ago | Press Release | $2.88 $2.89 | ▼ −0.35% | ▼ −1.38% | — |
Jun 18, 2026 18w ago | 424B5 | $2.84 $2.69 | ▲ +5.28% | ▲ +5.13% | — |
Apr 21, 2026 26w ago | 6-K | $2.58 $3.71 | ▲ +43.80% | ▲ +40.63% | — |
Apr 21, 2026 27w ago | Press Release | $2.58 $3.71 | ▲ +43.80% | ▲ +39.57% | — |
Apr 15, 2026 27w ago | 6-K | $3.20 $3.66 | ▲ +14.38% | ▲ +8.33% | — |
US Market Status
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