The company maintains an elite 91.80% gross margin, yet this is currently offset by a 3.14% year-over-year revenue decline that suggests softening demand for its premium skincare products.
| Metric | Oct'24 | Oct'23 | Oct'22 | Oct'21 |
|---|
| Sales/Revenue | 2.38M | 2.46M | 1.92M | 931.04K |
| Revenue Growth % | -3.14% | 28.12% | 106.16% | - |
| Cost of Goods Sold | 195.34K | 310.99K | 509.16K | 311.16K |
| COGS % of Revenue | 8.2% | 12.65% | 26.53% | 33.42% |
| Gross Profit | 2.19M | 2.15M | 1.41M | 619.87K |
| Gross Margin % | 91.8% | 87.35% | 73.47% | 66.58% |
| Gross Profit Growth % | 1.79% | 52.32% | 127.5% | - |
| Operating Expenses | 1.39M | 967.56K | 1.21M | 1.12M |
| OpEx % of Revenue | 58.48% | 39.35% | 63.21% | 120.39% |
| Selling, General & Admin | 1.18M | 784.57K | 1.15M | 1.12M |
| SG&A % of Revenue | 49.38% | 31.9% | 59.71% | 120.39% |
| Research & Development | 36.71K | 30.88K | 60.67K | 0 |
| R&D % of Revenue | 1.54% | 1.26% | 3.16% | - |
| Other Operating Expenses | 179.9K | 152.11K | 6.44K | 0 |
| Operating Income | 793.71K | 1.18M | 197.02K | -500.98K |
| Operating Margin % | 33.32% | 48.01% | 10.26% | -53.81% |
| Operating Income Growth % | -32.77% | 499.19% | 139.33% | - |
| EBITDA | 816.4K | 1.2M | 227.51K | -461.97K |
| EBITDA Margin % | 34.28% | 48.82% | 11.85% | -49.62% |
| EBITDA Growth % | -32% | 427.71% | 149.25% | - |
| D&A (Non-Cash Add-back) | 22.69K | 20.06K | 30.49K | 39.01K |
| EBIT | 793.71K | 1.18M | 190.2K | -483.76K |
| Net Interest Income | 783 | 1.59K | 69 | -1.03K |
| Interest Income | 783 | 1.59K | 263 | 167 |
| Interest Expense | 0 | 0 | 194 | 1.19K |
| Other Income/Expense | -293 | 1.01K | -7.01K | 16.02K |
| Pretax Income | 793.42K | 1.18M | 190.01K | -484.96K |
| Pretax Margin % | 33.31% | 48.05% | 9.9% | -52.09% |
| Income Tax | 314.86K | 329.53K | -1.29K | 0 |
| Effective Tax Rate % | 39.68% | 27.89% | -0.68% | 0% |
| Net Income | 478.56K | 852.04K | 191.3K | -484.96K |
| Net Margin % | 20.09% | 34.65% | 9.97% | -52.09% |
| Net Income Growth % | -43.83% | 345.4% | 139.45% | - |
| Net Income (Continuing) | 478.56K | 852.04K | 191.3K | -484.96K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.02 | 0.03 | 0.01 | -0.02 |
| EPS Growth % | -43.69% | - | 139.46% | - |
| EPS (Basic) | 0.02 | 0.03 | 0.01 | -0.02 |
| Diluted Shares Outstanding | 26.2M | 26.2M | 26.2M | 26.2M |
| Basic Shares Outstanding | 26.2M | 26.2M | 26.2M | 26.2M |
| Dividend Payout Ratio | - | - | - | - |
Geopolitical and Regulatory Exposure
As reported in recent financial disclosures, the company experienced a 3.14% year-over-year revenue decline, suggesting that the Park Ha brand is currently facing significant headwinds in its localized Chinese franchise distribution network, which may indicate a broader softening in consumer demand for premium skincare products.
The contraction in top-line performance warrants close monitoring of franchisee health and sell-through rates. It appears that the company's reliance on a niche, high-touch distribution model may be reaching a point of diminishing returns within its current geographic footprint.
Based on the provided financial figures, the company maintains an exceptionally high gross margin of 91.80%, which implies significant pricing power or highly efficient sourcing, though this is currently being offset by the broader revenue decline and potential deleveraging of fixed operating costs.
Such elevated gross margins are atypical for the personal products industry and suggest a unique brand premium or a service-heavy revenue mix. Investors should investigate whether these margins are sustainable or if they are vulnerable to increased competition and rising customer acquisition costs in the Chinese market.
According to the company's income statement data, the delta between the 91.80% gross margin and the 33.32% operating margin highlights a substantial investment in SG&A, which appears to be the primary driver of the company's current operational overhead and franchise support structure.
The significant gap between gross and operating profitability suggests that the company is heavily reliant on marketing and administrative support to maintain its franchise network. If revenue continues to contract, the fixed nature of these SG&A expenses may lead to further compression of operating margins.
As indicated by the reported 20.09% net margin, the company demonstrates strong bottom-line profitability, yet analysts should remain cautious regarding the potential for non-operating items or tax artifacts to influence these figures given the company's structure as a US-listed entity with operations in China.
The high net margin appears impressive, but it necessitates a deeper look into the sustainability of earnings, particularly regarding the timing of franchise fee recognition. Investors should monitor whether these profits are driven by recurring service revenue or one-time initial fees that may not repeat in future periods.
Quick answers to the most common questions about buying BYAH stock.
For fiscal year 2024, Park Ha Biological Technology Co., Ltd. Ordinary Shares (BYAH) reported total revenue of $2.4M. This represents a 155.8% increase compared to $0.9M in 2021.
Park Ha Biological Technology Co., Ltd. Ordinary Shares (BYAH) is profitable, generating $0.5M in net income for the fiscal year ending 2024 with a net profit margin of 20.1%.
Park Ha Biological Technology Co., Ltd. Ordinary Shares (BYAH) reported an operating income of $0.8M, resulting in an operating profit margin of 33.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Park Ha Biological Technology Co., Ltd. Ordinary Shares (BYAH) generated $2.2M in gross profit for the year, representing a gross profit margin of 91.8%. This demonstrates the company's core pricing power and production efficiency.