Plover Bay Technologies (1523) investor relations material

Executive summary

• Revenue rose 9.9% year-over-year to US$63 million for the first half of 2025, with net profit up 13.4% to US$21.7 million and diluted EPS at 1.96 US cents per share.

• Gross profit margin was stable at 55.5%, and net profit margin increased to 34.4% year-over-year.

• Recurring revenue accounted for 28.1% of sales, with a subscription take-up rate of 36.5% and devices under subscription up 18% year-on-year.

• Interim dividend of HKD 0.1234 per share declared, up 13.9% year-on-year, maintaining an 80% payout ratio.

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

Financial highlights

• Gross profit grew 10.1% year-on-year to US$35 million; operating expenses increased 4.2% to US$10.2 million.

• Profit before tax reached US$26.6 million, up 17% year-on-year.

• Operating cash flow was US$22.3 million; cash and cash equivalents at period end were US$55.7 million.

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

• Return on average equity reached 80.3% for the period.

Outlook and guidance

• Management expects long-term growth of 15%-20% and continued operating leverage in the second half.

• Market trends indicate strong growth in IoT connections (16% CAGR) and mobile data traffic (19% CAGR) through 2030.

• FWA adoption and LEO satellite services present significant growth opportunities.

• Product roadmap includes edge computing routers and FWA-centric solutions targeting small businesses.

• Gross margin expected to remain stable, with possible fluctuations due to market seeding or currency changes.