WeTouch reports $6 million net income for 2024, projects 97% profit growth

CHENGDU - WeTouch Technology Inc. (NASDAQ:WETH), currently trading at a modest P/E ratio of 4.8x, reported fiscal year 2024 revenue of $42.3 million, a 6.5% increase from the previous year, while net income declined 27.7% to $6 million compared to $8.3 million in 2023. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score.

The touchscreen display manufacturer ended the year with $103.7 million in cash, equivalent to $8.7 per share. Gross profit decreased 20.9% to $13.6 million, with gross margin falling to 32.2% from 43.3% in 2023. InvestingPro data shows the company holds more cash than debt and trades significantly below its Fair Value, suggesting potential upside opportunity.

The company attributed the margin decline to price volatility in key raw materials, increased labor costs from workforce expansion, and investments in large-format product production.

WeTouch, which specializes in large-format projected capacitive touchscreens ranging from 7.0 to 42 inches, saw its shipment volume increase 4.8% to 2,060,870 units. International sales grew to represent 35.3% of total revenue, up from 30.3% in 2023.

"Despite external challenges, the Company demonstrated resilience and continued to strengthen its leadership position in the large-format touchscreen industry," said CEO Zongyi Lian in the press release.

For fiscal year 2025, WeTouch has provided guidance projecting approximately $46.15 million in revenue, a 9% year-over-year increase, and net income of approximately $11.88 million, representing a 97% increase from 2024. With a price-to-book ratio of just 0.11, the stock appears significantly undervalued based on traditional metrics. Discover more valuable insights and 8 additional ProTips with InvestingPro.

The company’s products are used in financial terminals, automotive displays, POS systems, gaming, lottery, medical devices, and other specialized industries, with customers in China, Japan, South Korea, Germany, and the United States. The company’s strong international presence has helped maintain its current ratio at 34.75x, indicating robust short-term liquidity.

In other recent news, Wetouch Technology Inc. has received a notice from Nasdaq due to its failure to file the quarterly report for the period ending June 30, 2025, which marks another delay following its previously disclosed filing issues for its 2024 annual report and Q1 2025 report. In response to these challenges, Nasdaq has granted Wetouch Technology a compliance extension until October 13, 2025, to submit its overdue annual and quarterly reports. This extension comes after Nasdaq accepted Wetouch’s compliance plan addressing the delayed filings. Additionally, Wetouch Technology has appointed ST & Partners PLT as its new independent registered public accounting firm, effective immediately. The decision was made by the Audit Committee of the Board of Directors on June 27. Wetouch Technology stated that prior to this appointment, neither the company nor its representatives had consulted with ST & Partners PLT regarding accounting principles or audit opinions. These developments reflect ongoing efforts by Wetouch Technology to address its compliance and reporting challenges.

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