Raytech Holding spent the latest fiscal year turning a single-subsidiary Hong Kong appliance wholesaler into a three-leg group, and the income statement celebrated the change faster than cash conversion did. Design, advisory, and marketing work that did not exist a year earlier already supplied nearly a third of sales. The legacy Pure Beauty sourcing book still grew on new hair-styling models for brand owners. Reported profit more than doubled and the operating margin widened. The same year, receivables ballooned with the new service invoices and operating cash turned into an outflow. A June registered direct sale then more than doubled the share count at a discount to the tape. The fiscal year ended March 31, 2026.
Revenue reached $18 million, up more than four-fifths from the prior year. Net income rose to $2.1 million. That is a double-digit net margin on a still-tiny base, and it is the figure the multiple is being asked to capitalize. Operating cash nonetheless used $1.9 million because year-end receivables jumped to $8.6 million. Management states those balances had been fully settled by the date of the annual filing, which removes the collectability scare on that specific book. It does not remove the working-capital shape of the new services. Cash on the March balance sheet was $10 million. A June sale of new ordinary shares priced at $1.97 added fresh equity. Net proceeds were about $6 million. Weighted-average shares for the year were already more than double the prior count, so earnings per share slipped even as profit rose.
The live tape now trades as Atlas Trinity Tech after a mid-September name and ticker change, but the economic argument is unchanged. At a recent print near $3 and about $17 million of equity value, the market is paying a low-single-digit multiple of last year's profit and less than one times sales. That looks cheap only if the service stack repeats without another discounted raise. The opposing case is that the latest year bought growth with receivables, related-party manufacturing, and a share count that no longer matches the earnings-per-share print. One customer still supplied most of the revenue. A factory controlled by the chief executive still supplied most of the merchandise. Material weaknesses in segregation of duties and United States GAAP staffing remain unremediated. The debate is whether the next interim print shows service revenue converting to cash on a full-year run-rate, or whether the rebrand arrived ahead of the cash.