Plover Bay Technologies (1523) investor relations material

Executive summary

• Revenue rose 9.9% year-over-year to $63M (US$62.94M), with net profit up 13.4% to $21.7M and diluted EPS at $1.96 per share.

• Gross profit margin stable at 55.5%, with net profit margin at 34.4% year-over-year.

• Recurring revenue accounted for 28.1% of sales, with a 12.5% year-over-year increase and take-up rate at 36.5%.

• Interim dividend declared at HK12.34 cents per share, maintaining an 80% payout ratio.

• Strong EMEA and Asia Pacific growth offset a temporary North America sales dip due to shipment delays.

Financial highlights

• Gross profit increased 10.1% to $35M, with operating expenses up 4.2% to $10.2M, representing 16.1% of revenue.

• Profit before tax rose 17% to $26.6M; operating cash flow was $22M; cash and cash equivalents at period end were $55.7M.

• Trade receivables turnover increased to 74 days; inventory turnover improved to 97 days.

• Contract liabilities (future recurring revenue) rose 29% to $36.1M.

• Bank borrowings reduced to $3.09M, lowering the gearing ratio to 6.0%.

Outlook and guidance

• Long-term growth target of 15–20% per year, with continued operating leverage expected.

• Market trends show strong IoT and mobile data growth; FWA and LEO satellite services present new opportunities.

• Product roadmap includes edge computing routers, FWA-centric solutions, and expanded Starlink and Iridium partnerships.

• Optimism for EMEA and Asia Pacific as multi-year growth drivers; US market expected to recover after temporary shipment pause.

• Subscription business expected to accelerate with new features and partner system improvements.