TRT Latest Report

Trio-Tech's (stock code: TRT) operating revenue in 2024 was RMB86.19 million, a YoY decrease of 29.05% from RMB122.02 million in 2023. This significant decline may reflect the company's challenges in market competition, product demand, or other external factors.

Key Financial Data

1. Trio-Tech's operating revenue has significantly decreased, reflecting the intensified competition and insufficient market demand.

2. The company's profit margin decreased from 2.2% to 1.4% in 2024, indicating a decline in profitability.

3. Testing service revenue decreased by 20%, while manufacturing revenue grew by 60% and distribution revenue grew by 30%, suggesting an uneven performance across the company's business segments.

4. Overall demand in the industry has been affected by macroeconomic fluctuations, leading to a decline in the sales volume of consumer electronics.

5. Although the number of new orders increased by 20%-30%, the actual order value grew limited due to price decreases.

Industry Comparison

1. Industry-wide analysis: In the semiconductor industry, changes in overall market demand and competition affect the revenue performance of all companies. If the entire industry also experiences similar revenue declines, it may indicate industry-wide challenges. For example, TRT's competitors may also be affected by market pressures.

2. Peer comparison analysis: Compared to other companies in the industry, Trio-Tech's revenue decline is more significant, indicating a decline in market competitiveness. If the average revenue of peer companies remains stable or grows, it suggests that TRT needs to reevaluate its market strategy and product positioning.

Summary

Trio-Tech's operating revenue decline in 2024 is mainly affected by the intensified market competition, insufficient product demand, and macroeconomic fluctuations. Although the company shows some growth in manufacturing and distribution, the significant revenue decline indicates significant challenges. The company needs to reassess its strategy to cope with the current market environment.

Opportunities

1. Growth potential in manufacturing and distribution, especially if market demand improves, TRT can seize the opportunity to boost revenue.

2. Continuing product updates and technology R&D to adapt to market changes and enhance competitiveness.

3. Identifying new markets or customer segments, especially in underdeveloped areas.

Risks

1. The intensified competition may further compress profit margins, affecting the company's profitability.

2. The ongoing uncertainty in the macroeconomic environment may lead to further declines in downstream demand.

3. If there are no new market strategies or product releases, the company may face the risk of losing market share.