BoardWare Intelligence Technology (1204) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 23.6% YoY to HK$717.6m; profit for the year increased 40.6% to HK$4.5m, while net profit margin remained 0.6%.

• Growth reflected stronger enterprise IT solutions and distribution/resale revenue, with particularly rapid expansion in the PRC; gross margin declined as PRC contracts carried lower margins.

Financial highlights

• Revenue increased to HK$717.6m from HK$580.8m; gross profit rose to HK$115.6m from HK$100.4m; profit for the year reached HK$4.5m from HK$3.2m.

• Profit before tax was HK$7.4m vs. HK$6.7m; income tax expense was HK$2.9m vs. HK$3.4m.

• Basic EPS increased to HK0.90 cents from HK0.78 cents; no diluted EPS was presented for FY2023 because there were no dilutive potential ordinary shares.

• FY2022 included HK$8.6m of listing expenses; no such expense was incurred in FY2023.

Outlook and guidance

• Plans focus on preserving Macau’s competitive position and expanding market share in Hong Kong and the PRC, while enhancing IT solutions with AI and digital content.

• Management expects Greater Bay Area IT demand to benefit from economic recovery, Hengqin’s tax-free arrangements for qualifying goods, smart-city and IoT initiatives, and technology investment supporting Macau’s industry diversification.

• Unutilised IPO proceeds of HK$37.7m were scheduled for use in 2024, primarily for two enterprise IT projects, Greater Bay Area opportunities and product development.