Revenue growth has decelerated to a -0.99% year-over-year decline, while thin margins are evidenced by a 14.98% gross margin and a 5.66% operating margin.
| Metric | Mar'25 | Mar'24 | Mar'23 | Mar'22 |
|---|
| Sales/Revenue | 40.04M | 40.44M | 24.16M | 26.5M |
| Revenue Growth % | -0.99% | 67.39% | -8.82% | - |
| Cost of Goods Sold | 34.04M | 35.42M | 20.68M | 24.58M |
| COGS % of Revenue | 85.02% | 87.59% | 85.59% | 92.75% |
| Gross Profit | 6M | 5.02M | 3.48M | 1.92M |
| Gross Margin % | 14.98% | 12.41% | 14.41% | 7.25% |
| Gross Profit Growth % | 19.55% | 44.19% | 81.24% | - |
| Operating Expenses | 3.73M | 3.58M | 2.69M | 3.09M |
| OpEx % of Revenue | 9.32% | 8.86% | 11.12% | 11.67% |
| Selling, General & Admin | 3.62M | 3.43M | 2.65M | 3.02M |
| SG&A % of Revenue | 9.03% | 8.49% | 10.96% | 11.41% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 117.01K | 149.64K | 36.97K | 69.94K |
| Operating Income | 2.27M | 1.43M | 794.84K | -1.17M |
| Operating Margin % | 5.66% | 3.55% | 3.29% | -4.42% |
| Operating Income Growth % | 58.06% | 80.46% | 167.81% | - |
| EBITDA | 2.36M | 1.55M | 1.26M | -811.56K |
| EBITDA Margin % | 5.88% | 3.83% | 5.23% | -3.06% |
| EBITDA Growth % | 52.04% | 22.68% | 255.64% | - |
| D&A (Non-Cash Add-back) | 88.72K | 115.15K | 468.26K | 360.54K |
| EBIT | 2.51M | 1.63M | 1.54M | -929.83K |
| Net Interest Income | -142.81K | -94.91K | -16.85K | -126.04K |
| Interest Income | 790 | 2.64K | 5.28K | 3.57K |
| Interest Expense | 143.6K | 97.55K | 22.13K | 129.61K |
| Other Income/Expense | 103.92K | 101.1K | 725.77K | 112.67K |
| Pretax Income | 2.37M | 1.54M | 1.52M | -1.06M |
| Pretax Margin % | 5.92% | 3.8% | 6.29% | -4% |
| Income Tax | 591.11K | 451.79K | 331.69K | -123.66K |
| Effective Tax Rate % | 24.93% | 29.42% | 21.81% | 11.67% |
| Net Income | 1.78M | 1.08M | 1.19M | -935.78K |
| Net Margin % | 4.45% | 2.68% | 4.92% | -3.53% |
| Net Income Growth % | 64.25% | -8.85% | 227.05% | - |
| Net Income (Continuing) | 1.78M | 1.08M | 1.19M | -935.78K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.15 | 0.09 | 0.10 | -0.08 |
| EPS Growth % | 66.3% | -8.8% | 226.96% | - |
| EPS (Basic) | 0.15 | 0.09 | 0.10 | -0.08 |
| Diluted Shares Outstanding | 12.02M | 12.02M | 12.02M | 12.02M |
| Basic Shares Outstanding | 12.02M | 12.02M | 12.02M | 12.02M |
| Dividend Payout Ratio | - | - | - | - |
Geographic and liquidity concentration
As reported in financial statements, ELOG experienced a -0.99% year-over-year revenue decline, suggesting that the company's reliance on the Suzhou Industrial Park for project-based logistics may have reached a saturation point, limiting the firm's ability to capture new industrial expansion opportunities in the current cycle.
The marginal contraction in top-line performance indicates that the company's specialized project logistics model is struggling to offset the lack of growth in its primary geographic corridor. Investors should monitor whether this trend reflects a broader slowdown in regional capital expenditure or a loss of market share to larger, more diversified logistics competitors.
Based on reported figures, ELOG maintains a 14.98% gross margin, which appears to highlight the commoditized nature of its logistics services and suggests that the firm lacks the significant pricing power required to defend its profitability against rising input costs in the East China region.
The narrow gross margin profile implies that the company operates as a high-variable-cost provider, likely heavily dependent on third-party subcontracting. This structure leaves little room for operational error and suggests that any volatility in fuel or labor costs could disproportionately compress the firm's bottom-line results.
According to recent filings, the company's 5.66% operating margin suggests that administrative and selling expenses consume a substantial portion of gross profit, indicating that ELOG may struggle to achieve meaningful operating leverage without a significant shift toward higher-value consulting or proprietary asset ownership.
The current spread between gross and operating margins implies that the firm's fixed cost base is disproportionately high relative to its revenue scale. This lack of scalability warrants further investigation into whether management can optimize its administrative structure or if the business model is inherently limited by its current operational footprint.
As indicated by the company's reported figures, the combination of a meager $846,409 cash position against $40M in annual revenue suggests a precarious liquidity profile that may leave the firm vulnerable to sudden shifts in working capital requirements or unexpected regional economic downturns.
Short-sellers might focus on the potential for revenue recognition timing to mask underlying operational weakness, particularly given the lumpy nature of project-based logistics. The reliance on a single industrial region for the majority of its business creates a concentrated risk profile that is not adequately mitigated by the current balance sheet.
Quick answers to the most common questions about buying ELOG stock.
For fiscal year 2024, Eastern International Ltd. Ordinary Shares (ELOG) reported total revenue of $40.0M. This represents a 51.1% increase compared to $26.5M in 2021.
Eastern International Ltd. Ordinary Shares (ELOG) is profitable, generating $1.8M in net income for the fiscal year ending 2024 with a net profit margin of 4.4%.
Eastern International Ltd. Ordinary Shares (ELOG) reported an operating income of $2.3M, resulting in an operating profit margin of 5.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Eastern International Ltd. Ordinary Shares (ELOG) generated $6.0M in gross profit for the year, representing a gross profit margin of 15.0%. This demonstrates the company's core pricing power and production efficiency.