ASBISc Enterprises (ASB) investor relations material

Executive summary

• Q2 and H1 2026 saw record revenues and profits, with H1 revenue at $2,965.2 million and net profit at $80.98 million, reflecting strong growth across all regions.

• AI server and server component business became the largest segment, surpassing smartphones, with significant expansion in Africa and the USA, including new Bang & Olufsen and Apple stores.

• Recognized as NVIDIA's preferred EMEA partner and Star Performer at the NVIDIA Partner Awards 2026.

• Several new subsidiaries were incorporated or acquired in 2026, including in Azerbaijan, Latvia, Ivory Coast, and Ghana.

• Total comprehensive income for H1 2026 was $78.07 million.

Financial highlights

• Q2 2026 revenue reached $1,696.7 million, up 79% YoY; H1 2026 revenue was $2,965.2 million, up 76% YoY.

• Q2 2026 gross profit was $119.9 million (+89% YoY), with a margin of 7.07%; net income was $44.3 million (+265% YoY).

• H1 2026 net profit was $80.98 million, up from $19.51 million YoY; operating margin improved to 3.95% in H1 2026.

• Cash and cash equivalents at period end were $220.88 million, up from $206.51 million at year-end 2025.

• SG&A expenses grew modestly despite a 30%+ sequential revenue increase, reflecting operating leverage.

Outlook and guidance

• Management expects continued growth in AI server and component business, with a strong backlog of nearly $900 million extending into next year.

• Gross margin is expected to remain above 7%, with potential for improvement in H2 due to seasonality and new Apple product launches.

• Revenue and profitability are expected to be higher in the second half due to seasonality, with increased demand during the Christmas and academic periods.

• Plans to continue hefty dividend payments, targeting up to 50% of audited net profit.

• No significant supply issues anticipated for Apple products, though industry-wide shortages and price increases are possible.