Share count
61Mpeak FY2025
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RITR, Reitar Logtech Holdings Limited
Revenue is Construction and engineering services (96%) and Asset management and professional consultancy services (4%).
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
HK$378M
+50.1% YoY · 38% 3-yr CAGR
Vital signs · TTM, with 4-yr average
Revenue HK$378M 4-yr avg HK$215M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- A property business, read on funds from operations and net asset value rather than reported earnings.
- What moves the needle
- Gross margin has run about 25% and operating margin about 11% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from 2.6% to 16% — on a steadier 25% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. The cash cycle has run negative through the cycle (a median of −99 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run high across the record (median 24%, above 15% in 2 of 3 years). Owner earnings, the cash-based check, have been thin too. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Construction and engineering services is 96% of revenue, so this is largely a single-segment business.
Revenue by reportable segment, FY2025
- Construction and engineering services96%HK$363M
- Asset management and professional consultancy services4%HK$15M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2022–2025
realized figures from each filing · older years to the left| 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2025 | |
|---|---|---|---|---|---|
| Income statement | |||||
| HK$144M | HK$84M | HK$252M | HK$378M | HK$378M | RevenueRevenue |
| HK$19M | HK$64M | HK$20M | HK$2M | HK$2M | Net incomeNet inc. |
| Cash flow & returns | |||||
| HK$19M | HK$64M | HK$22M | HK$5M | HK$5M | Funds from operationsFFO |
| Balance sheet | |||||
| 56% | — | — | — | 221% | Dividend payout (FFO)Payout |
| — | HK$204M | HK$243M | HK$334M | HK$334M | Total assetsAssets |
| — | (HK$47M) | (HK$6M) | (HK$20M) | (HK$20M) | Net debt / (cash)Net debt |
| 140.3× | 42.7× | 19.0× | 3.6× | 3.6× | Interest coverageInt. cov. |
| — | HK$79M | HK$98M | HK$163M | HK$163M | Shareholders’ equityEquity |
| Per share | |||||
| 30.0M | 41.8M | 60.0M | 61.5M | 62.4M | Shares out (diluted)Shares |
| HK$0.64 | HK$1.54 | HK$0.37 | HK$0.08 | HK$0.08 | FFO / shareFFO/sh |
| HK$0.36 | — | — | — | HK$0.17 | Dividends / shareDiv/sh |
| — | HK$1.88 | HK$1.64 | HK$2.65 | HK$2.61 | Book value / shareBVPS |
The diluted share count moved ×1.44 into 2024 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 3-yr | 5-yr | |
|---|---|---|
| Revenue / share | +8.6%/yr | +8.6%/yr (3-yr) |
| EPS | −60.4%/yr | −60.4%/yr (3-yr) |
| Capital spending / share | +137.8%/yr | +137.8%/yr (3-yr) |
| Book value / share | +18.8%/yr (2-yr) | +18.8%/yr (2-yr) |
The record, charted
FY2022–2025Each measure over its full record; the current point and the worst year marked.
ROIC
3%low FY2025
Gross margin
16%low FY2025
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Will it survive?
- AdequateOperating income HK$10M ÷ interest expense HK$3M
What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
- Net cash, debt-freeCash HK$20M − debt HK$0
What this means
Cash and short-term investments exceed every dollar of debt by HK$20M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 8 + DIO 0 − DPO 28 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)
Is it a good business?
- Not enough dataIndustry peers: median 4%
What this means
The filing data didn't include the inputs for this check.
- Consumes cash through the cycle4-yr median margin, range -17%–58%; latest (HK$65M) = operating cash (HK$62M) − maintenance capex HK$2MIndustry peers: median 36%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -17% of revenue this year, a -8% median across 4 years.
- Are earnings backed by cash? -25.55×Thinly cash-backedCash from ops (HK$62M) ÷ net income HK$2M
In the filing’s words Read against the cash, reported earnings have run ahead of the operating cash the business generated over the record — about 17% of assets a year, among the widest gaps in the catalogue. For an inventory- or content-heavy grower that can be cash tied up in real assets as it expands; elsewhere it can mean the earnings lean on accounting estimates — the cash-flow statement against the income statement is where to tell which.
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- No surplus to allocate
What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
- Investing or harvesting? 1.64×ExpandingCapex HK$4M ÷ depreciation HK$2M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 0 of 1 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · HK$378M
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity NearCurrent ratio ≥ 2× · 1.58×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are HK$0.46/share (latest year HK$0.04), the averaged base the calculator's gate runs on, and book value is HK$2.61/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2022–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 4 of 4
What this means
Never lost money over the record, the earnings stability Graham insisted on.
- Operating margin 14% → 7% (2-yr avg ends)
What this means
Through the cycle the operating margin slipped — about 14% early to 7% lately, median 11% — competition or costs are biting in.
- Worst year 2025 · 2.6% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
- Dividend record paid
What this means
Paid a dividend in 1 of the years on record.
- How management talks about it Promotional
What this means
The returns have faded, yet the filing reaches for a promoter’s vocabulary — world-class, best-in-class, disruptive — more than an owner’s. When the words sell harder than the results deliver, the gap is the thing to weigh.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Mar 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsHK$279M
- Cash & short-term investmentsHK$20M
- ReceivablesHK$8M
- Other current assetsHK$250M
Current liabilitiesHK$176M
- Accounts payableHK$24M
- Other current liabilitiesHK$152M
Current ratio1.58×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.58×stricter: inventory excluded
Cash ratio0.12×strictest: cash alone against what's due
Working capitalHK$102Mthe cushion left after near-term bills
Cash runway0.3 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Deeper floors
Tangible book valueHK$128Mequity stripped of goodwill & intangibles
Net current asset valueHK$102MGraham's net-net: current assets less all liabilities
Debt incl. operating leasesHK$2MHK$2M of it operating leases
Deferred revenueHK$54Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Peers, Real Estate Development & Services
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| JOESt. Joe Company (The) | $513M | 43% | 24.5% | 6% | 25% |
| TRNOTerreno Realty | $476M | — | 37.6% | 3% | 37% |
| OPIOffice Properties Income Trust | $443M | — | 21.5% | 3% | 36% |
| RITRReitar Logtech Holdings Limited | HK$378M | 26% | 11.2% | 24% | -3% |
| IIPRInnovative Industrial Properties | $266M | — | 55.8% | 4% | 72% |
| GTYGetty Realty | $222M | — | 50.4% | 5% | 56% |
| GOODGladstone Commercial Corp | $161M | — | — | — | — |
| BOCBoston Omaha Corporation | $114M | 70% | -20.5% | -2% | -6% |
| Group median | — | 43% | 24.5% | 4% | 36% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. Reitar Logtech Holdings Limited reports in HKD, and every figure here (owner earnings, book value, the share count) is on that HKD, ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share in HKD. A US ADR price in dollars bundles the ADR-to-ordinary ratio and the exchange rate, so it will not reconcile with these figures and would throw the multiple off.
Reitar Logtech Holdings Limited is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
HK$
The assumptions
Revenue, delivered49%/yr’22→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−18%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Reitar Logtech Holdings Limited (RITR), the owner's record," https://ownerscorecard.com/c/RITR, data as of 2026-07-09.
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