Reitar Logtech (RITR) Surges 3.58% on 10-Day 22.72% Rally Amid Mixed Earnings and Bitcoin Debate

Reitar Logtech (RITR) surged 3.58% on Thursday, extending its winning streak to 10 consecutive sessions with a 22.72% rally over the past 10 days. The stock hit a peak not seen since September 2025, climbing 6.81% intraday amid renewed investor interest.

The recent price rebound follows a tumultuous earnings season for the Hong Kong-based PLT solutions provider. While FY2025 revenue jumped 50.1% year-on-year to HK$378.2 million, net income from continuing operations collapsed by 88% to HK$2.4 million. Margin compression—dropping to 15.9% from 25.4%—highlighted operational strains linked to rising subcontracting costs and a shift toward low-margin services. A 140% spike in credit loss provisions to HK$16.8 million further underscored liquidity risks, exacerbated by 85% revenue concentration from two clients.

Strategic moves have introduced mixed signals. The launch of Warehouse as a Service (WaaS) generated HK$391,925 in revenue with a 44.5% margin, suggesting potential for scalable growth. However, the controversial allocation of $1.5 billion in Bitcoin reserves—financed through share issuance—has raised governance concerns. Critics argue the move prioritizes speculative DeFi experimentation over core operational stability, while internal control weaknesses, including inadequate segregation of duties, remain unresolved.

Investor sentiment has been volatile. A post-earnings 11.9% rally on August 16 gave way to a “Sell” rating from Wall Street Zen on August 25, reflecting fears over deteriorating profitability and Bitcoin exposure. The downgrade, coupled with earnings-linked skepticism about the sustainability of growth strategies, has created a tug-of-war between optimism over innovation and caution over financial fragility.

Looking ahead, Reitar faces critical crossroads. Restoring margins through subcontractor cost optimization and expanding high-margin offerings like WaaS could stabilize its position. Yet the Bitcoin integration—while pioneering—introduces regulatory and execution risks that may outweigh its strategic appeal. With 91.2% of FY2025 costs tied to subcontractors, operational resilience remains a key question mark. The coming months will test whether Reitar can balance bold innovation with the fundamentals needed to sustain investor confidence.