Revenue growth remains highly volatile, swinging from a 78.8% surge in 2024Q2 to a 13.5% contraction in 2026Q2, while gross margins have fluctuated between 18.2% and 26.4% over the last ten quarters.
| Sales/Revenue | 150.12M | 78.74M | 66.97M | 45.52M | 45.11M | 31.86M |
| Revenue Growth % | - | 17.57% | 47.13% | 0.91% | 41.58% | - |
| Cost of Goods Sold | 116.29M | 60.93M | 52.07M | 4.36M | 4.24M | 23.95M |
| COGS % of Revenue | - | 77.38% | 77.74% | 9.57% | 9.41% | 75.19% |
| Gross Profit | 33.83M | 17.81M | 14.9M | 1.45M | 1.55M | 7.91M |
| Gross Margin % | 22.54% | 22.62% | 22.26% | 3.18% | 3.44% | 24.81% |
| Gross Profit Growth % | - | 19.48% | 928.89% | -6.55% | -80.39% | - |
| Operating Expenses | 17.11M | 10.16M | 3.55M | 4.28M | 1.38M | 1.19M |
| OpEx % of Revenue | - | 12.9% | 5.29% | 9.4% | 3.06% | 3.72% |
| Selling, General & Admin | 17.11M | 10.16M | 3.46M | 4.16M | 1.34M | 1.17M |
| SG&A % of Revenue | - | 12.9% | 5.16% | 9.14% | 2.98% | 3.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 3.69K | 0 | 90.34K | 116.5K | 37.53K | 12.18K |
| Operating Income | 16.72M | 7.65M | 11.36M | 7.19M | 10.72M | 6.72M |
| Operating Margin % | 11.14% | 9.71% | 16.96% | 15.81% | 23.78% | 21.09% |
| Operating Income Growth % | - | -32.67% | 57.9% | -32.92% | 59.6% | - |
| EBITDA | 17.89M | 7.65M | 11.36M | 7.21M | 10.73M | 6.73M |
| EBITDA Margin % | 11.92% | 9.72% | 16.97% | 15.84% | 23.79% | 21.13% |
| EBITDA Growth % | - | -32.65% | 57.64% | -32.81% | 59.38% | - |
| D&A (Non-Cash Add-back) | 6.81K | 4.87K | 4.87K | 14.86K | 4.82K | 12.18K |
| EBIT | 17.89M | 10.52M | 11.36M | 7.19M | 10.72M | 6.72M |
| Net Interest Income | 5.32M | 3.16M | 1.41M | 136.2K | -1.35K | 1.3K |
| Interest Income | 5.32M | 3.16M | 1.42M | 143.35K | 327 | 1.3K |
| Interest Expense | 0 | 0 | 2.03K | 7.15K | 1.68K | 0 |
| Other Income/Expense | 4.84M | 2.88M | 1.39M | 279.65K | 455.94K | 2.65K |
| Pretax Income | 21.56M | 10.52M | 12.75M | 7.47M | 11.18M | 6.72M |
| Pretax Margin % | 14.36% | 13.37% | 19.04% | 16.42% | 24.79% | 21.1% |
| Income Tax | 5.04M | 2.26M | 2.82M | 1.18M | 1.74M | 1.1M |
| Effective Tax Rate % | 23.39% | 21.44% | 22.09% | 15.8% | 15.56% | 16.34% |
| Net Income | 16.52M | 8.27M | 9.94M | 6.29M | 9.44M | 5.62M |
| Net Margin % | 11% | 10.5% | 14.84% | 13.82% | 20.93% | 17.65% |
| Net Income Growth % | - | -16.79% | 57.91% | -33.34% | 67.86% | - |
| Net Income (Continuing) | 16.52M | 8.27M | 9.94M | 6.29M | 9.44M | 5.62M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.86 | 3.00 | 3.88 | 2.25 | 3.38 | 2.00 |
| EPS Growth % | - | -22.68% | 72.44% | -33.43% | 69% | - |
| EPS (Basic) | - | 3.00 | 3.88 | 2.25 | 3.38 | 2.00 |
| Diluted Shares Outstanding | 2.82M | 2.75M | 2.56M | 2.8M | 2.8M | 2.8M |
| Basic Shares Outstanding | 2.82M | 2.75M | 2.56M | 2.8M | 2.8M | 2.8M |
| Dividend Payout Ratio | - | - | - | - | 16.5% | - |
Capital allocation inefficiency
According to the provided income statement data, Raytech's revenue trajectory exhibits significant volatility, swinging from a 78.8% surge in 2024Q2 to a 13.5% contraction by 2026Q2, suggesting that the company's top-line performance remains highly sensitive to the timing of specific purchase orders from international brand owners.
The erratic revenue growth suggests that Raytech lacks a recurring revenue base, leaving it vulnerable to the cyclical inventory cycles of its clients. Investors should monitor whether this inconsistency reflects a lack of long-term contract stability or merely the lumpy nature of ODM project-based manufacturing.
As reported in financial statements, Raytech's gross margin has fluctuated between 18.2% and 26.4% over the last ten quarters, indicating that the company faces persistent challenges in maintaining pricing power while navigating the competitive landscape of high-precision personal care electronics manufacturing.
The compression of gross margins during periods of higher revenue suggests that Raytech may be sacrificing pricing to secure volume, which is a common trait in commoditized ODM markets. This trend warrants further investigation into whether the company can achieve economies of scale or if it remains a price-taker.
Based on the company's reported figures, the net margin of 10.50% frequently exceeds the operating margin of 9.71%, which implies that a meaningful portion of the bottom-line profitability is derived from non-operating sources, likely interest income generated by the company's substantial cash reserves.
This discrepancy suggests that the core manufacturing business is less profitable than the headline net income figures might imply to a casual observer. Analysts should strip out these non-operating gains to accurately assess the underlying operational health and efficiency of the manufacturing segment.
Data from recent filings indicates that SG&A expenses have remained relatively contained, yet the lack of R&D investment, consistently reported at zero, suggests a potential long-term risk to the company's ability to innovate and maintain its niche competitive position in the personal care electronics market.
While the low SG&A profile supports current operating margins, the absence of R&D spending may indicate a reliance on legacy tooling rather than future-proofing the product portfolio. This strategy appears to prioritize short-term cost discipline over the long-term technical differentiation required to sustain an ODM moat.
Quick answers to the most common questions about buying RAY stock.
For fiscal year 2025, Raytech Holding Limited Ordinary Shares (RAY) reported total revenue of $78.7M. This represents a 147.2% increase compared to $31.9M in 2021.
Raytech Holding Limited Ordinary Shares (RAY) is profitable, generating $8.3M in net income for the fiscal year ending 2025 with a net profit margin of 10.5%.
Raytech Holding Limited Ordinary Shares (RAY) reported an operating income of $7.6M, resulting in an operating profit margin of 9.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Raytech Holding Limited Ordinary Shares (RAY) generated $17.8M in gross profit for the year, representing a gross profit margin of 22.6%. This demonstrates the company's core pricing power and production efficiency.