Highway Holdings Limited (HIHO) Bundle
A Brief History of Highway Holdings Limited
Company Overview
Highway Holdings Limited, established in 1990, operates as an international manufacturer of a diverse range of quality parts and products for blue-chip equipment manufacturers, particularly in Germany. The company's administrative offices are located in Hong Kong, while manufacturing facilities are situated in Yangon, Myanmar, and Shenzhen, China.
Recent Financial Performance
As of the second quarter of fiscal year 2025, Highway Holdings reported significant growth in its financial performance:
| Financial Metric | Q2 2025 | Q2 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $2,117,000 | $1,322,000 | 60.1% |
| Cost of Sales | $1,283,000 | $939,000 | 36.6% |
| Gross Profit | $834,000 | $383,000 | 117.8% |
| Operating Income | $110,000 | $111,000 | -0.9% |
| Net Income | $231,000 | $213,000 | 8.5% |
Balance Sheet Highlights
As of September 30, 2024, the company's balance sheet reflects a robust financial position:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $11,044 |
| Cash and Cash Equivalents | $5,614 |
| Total Liabilities | $4,277 |
| Total Shareholders’ Equity | $6,767 |
Operational Developments
Highway Holdings has been expanding its operations and product offerings. The company is preparing to launch a new motor project, with production expected to commence in the fiscal third quarter of 2025, ramping up in the fourth quarter. This initiative is part of the company's strategy to enhance revenue growth and profitability.
Market Challenges
The company continues to navigate challenges stemming from the post-COVID environment, including geopolitical tensions affecting supply chains and demand levels. Despite these hurdles, Highway Holdings remains optimistic about its recovery trajectory.
A Who Owns Highway Holdings Limited (HIHO)
Ownership Structure
As of 2024, Highway Holdings Limited (HIHO) has a diverse ownership structure. The largest shareholder is the Chairman and CEO, Roland Kohl, who holds a significant portion of the company's shares. The company's shares are publicly traded on the NASDAQ, which allows for widespread ownership among institutional and retail investors.
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Roland Kohl | Approximately 23% | Insider Ownership |
| Institutional Investors | Approximately 45% | Institutional Ownership |
| Retail Investors | Approximately 32% | Public Ownership |
Financial Overview
The financial position of Highway Holdings Limited reflects a healthy balance sheet. As of September 30, 2024, the company reported total assets of $11.0 million, with cash and cash equivalents exceeding $5.6 million.
| Financial Metric | Value |
|---|---|
| Total Assets | $11.0 million |
| Cash and Cash Equivalents | $5.6 million |
| Total Shareholders' Equity | $6.8 million |
| Net Income (Q2 FY2025) | $231,000 |
Recent Performance
Highway Holdings Limited has shown significant revenue growth, reporting a 60.1% year-over-year increase in revenue for the second quarter of fiscal year 2025, amounting to $2.117 million. The gross profit for the same period was $834,000, up from $383,000 the previous year.
| Performance Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Net Sales | $2.117 million | $1.322 million |
| Gross Profit | $834,000 | $383,000 |
| Net Income | $231,000 | $213,000 |
| EPS (Diluted) | $0.05 | $0.05 |
Market Position
Highway Holdings operates in the manufacturing sector, primarily serving blue-chip equipment manufacturers. The company maintains a strong market presence, with its manufacturing facilities located in Yangon, Myanmar, and Shenzhen, China. The administrative headquarters is based in Hong Kong.
Shareholder Insights
The company is committed to enhancing shareholder value, with a focus on expanding revenue growth and profitability. The management has expressed optimism about future business prospects, especially with the upcoming launch of new product lines.
Highway Holdings Limited (HIHO) Mission Statement
Company Overview
Highway Holdings Limited (HIHO) is an international manufacturer specializing in a diverse range of quality parts and products primarily for blue-chip equipment manufacturers. The company operates its administrative offices in Hong Kong, with manufacturing facilities in Yangon, Myanmar, and Shenzhen, China. As of 2024, the company continues to focus on enhancing operational efficiency and expanding its product offerings to meet customer demands.
Mission Statement
The mission of Highway Holdings Limited is to deliver high-quality manufacturing solutions to its clients while ensuring sustainable growth and profitability. The company is dedicated to innovation, operational excellence, and creating value for its shareholders and stakeholders.
Financial Performance
Highway Holdings Limited reported significant financial growth in the second quarter of fiscal year 2025. Key financial metrics include:
| Financial Metric | Q2 FY2025 | Q2 FY2024 | Change (%) |
|---|---|---|---|
| Net Sales | $2,117,000 | $1,322,000 | 60.1% |
| Gross Profit | $834,000 | $383,000 | 117.8% |
| Selling, General and Administrative Expenses | $724,000 | $272,000 | 166.2% |
| Net Income | $231,000 | $213,000 | 8.5% |
| Cash and Cash Equivalents | $5,614,000 | $6,601,000 | -15.0% |
Strategic Initiatives
The company is actively pursuing several strategic initiatives aimed at enhancing its market position:
- Introduction of new product lines, particularly in the motor project expected to start production in Q3 FY2025.
- Exploration of new business ventures that could significantly improve future revenue streams.
- Continuing focus on building long-term shareholder value through efficient operations and strategic investments.
Market Challenges
Despite the positive financial growth, Highway Holdings faces several challenges:
- Ongoing economic uncertainties due to geopolitical tensions, including the Russia/Ukraine conflict.
- Adverse impacts on customer orders resulting from the global economic environment post-COVID.
- Maintaining operational efficiency amid rising costs and inflationary pressures.
Conclusion
Highway Holdings Limited remains committed to its mission of delivering quality manufacturing solutions while navigating challenges in the current market environment.
How Highway Holdings Limited (HIHO) Works
Company Overview
Highway Holdings Limited (ticker: HIHO) operates primarily as an international manufacturer of various quality parts and products, serving blue-chip equipment manufacturers, predominantly based in Germany. The company has its administrative offices located in Hong Kong, with manufacturing facilities situated in Yangon, Myanmar, and Shenzhen, China.
Financial Performance
As of the second quarter of fiscal year 2025, which ended September 30, 2024, Highway Holdings reported significant financial growth. The company achieved net sales of $2,117,000 for the quarter, which is a 60.1% year-over-year increase compared to $1,322,000 in the same quarter of the previous year. For the first half of fiscal year 2025, net sales totaled $3,996,000, up from $2,669,000 in the prior year.
| Financial Metrics | Q2 2024 | Q2 2023 | First Half 2024 | First Half 2023 |
|---|---|---|---|---|
| Net Sales | $2,117,000 | $1,322,000 | $3,996,000 | $2,669,000 |
| Cost of Sales | $1,283,000 | $939,000 | $2,501,000 | $1,909,000 |
| Gross Profit | $834,000 | $383,000 | $1,495,000 | $760,000 |
| Operating Income | $110,000 | $111,000 | $113,000 | ($289,000) |
| Net Income Attributable to Shareholders | $231,000 | $213,000 | $329,000 | ($125,000) |
Cost Structure and Expenses
The cost of sales for the second quarter of fiscal year 2025 was $1,283,000, leading to a gross profit margin of approximately 39.4%, up from 29.0% in the same quarter last year. Selling, general, and administrative expenses rose to $724,000 in Q2 2025 from $272,000 in Q2 2024, reflecting changes in bad debt provisions.
Non-operating Income and Taxes
Highway Holdings also reported non-operating income of $121,000 for Q2 2025, which included an exchange gain of $58,000 and interest income of $58,000. The company had no income tax expense for the quarter, resulting in net income before non-controlling interests of $231,000.
Balance Sheet Overview
As of September 30, 2024, Highway Holdings had total assets of $11,044,000. The breakdown of current assets included:
| Current Assets | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $5,614 |
| Accounts Receivable | $1,982 |
| Inventories | $1,785 |
| Prepaid Expenses | $156 |
| Total Current Assets | $9,537 |
The company’s current liabilities stood at $3,730,000, resulting in total shareholders’ equity of $6,767,000 as of the same date, indicating a solid financial position with cash and cash equivalents exceeding both short- and long-term liabilities by approximately $1.4 million.
Future Outlook
Highway Holdings is optimistic about its future, particularly with a new motor project set to commence production in the third quarter of fiscal year 2025. The company aims to stabilize its core operations while enhancing revenue growth and profitability through new ventures and projects.
How Highway Holdings Limited (HIHO) Makes Money
Revenue Streams
Highway Holdings Limited generates revenue primarily through the manufacturing and sale of quality parts and products for blue-chip equipment manufacturers. The company’s operations are based in Hong Kong, with manufacturing facilities located in Yangon, Myanmar, and Shenzhen, China.
Financial Performance
For the second quarter of fiscal year 2025, Highway Holdings reported net sales of $2,117,000, representing a significant increase of 60.1% compared to $1,322,000 in the same period of the previous year. For the six months ended September 30, 2024, net sales totaled $3,996,000, up from $2,669,000 year-over-year.
| Financial Metric | Q2 2024 | Q2 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|
| Net Sales | $2,117,000 | $1,322,000 | $3,996,000 | $2,669,000 |
| Cost of Sales | $1,283,000 | $939,000 | $2,501,000 | $1,909,000 |
| Gross Profit | $834,000 | $383,000 | $1,495,000 | $760,000 |
| Operating Income | $110,000 | $111,000 | $113,000 | ($289,000) |
| Net Income | $231,000 | $213,000 | $329,000 | ($125,000) |
Cost Structure
The cost of sales for the second quarter of fiscal year 2025 was $1,283,000, leading to a gross profit of $834,000, which translates to a gross profit margin of 39.4%. For the first half of fiscal year 2025, the gross profit margin was 37.4%.
Non-Operating Income
Highway Holdings also benefits from non-operating income, which includes currency exchange gains and interest income. For the second quarter of fiscal year 2025, the company reported a currency exchange gain of $58,000 and interest income of approximately $58,000. The total non-operating income for this quarter amounted to $121,000.
Assets and Equity
As of September 30, 2024, Highway Holdings had total assets of $11,044,000, with cash and cash equivalents of $5,614,000. The total shareholders’ equity stood at $6,767,000, representing $1.54 per diluted share.
| Balance Sheet Item | Value (as of Sept 30, 2024) |
|---|---|
| Total Assets | $11,044,000 |
| Cash and Cash Equivalents | $5,614,000 |
| Total Shareholders’ Equity | $6,767,000 |
| Net Cash Position | $1,400,000 (excess of cash over liabilities) |
Future Growth Prospects
The company is optimistic about future growth, particularly with the upcoming launch of a new motor project expected to begin production in the fiscal third quarter of 2025. This initiative aims to enhance revenue streams further.
Highway Holdings’ business strategy includes evaluating numerous potential ventures that could significantly improve future performance and shareholder value.
Highway Holdings Limited (HIHO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Highway Holdings Limited (HIHO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Highway Holdings Limited (HIHO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Highway Holdings Limited (HIHO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.