BOSA Technology (8140) H2 24/25 earnings summary

Executive summary

• Revenue declined 18.3% year-over-year to HK$82.3 million due to lower sales from mechanical splicing services and fewer new projects and customers.

• Net profit margin improved to 38.3% from 34.2% last year, mainly due to a significant reversal of impairment loss on trade receivables.

• The Group completed 203 projects (up from 126) and secured 157 new contracts, but recognized lower revenue from ongoing and new projects.

• The Board remains confident in the long-term outlook, supported by government infrastructure spending and strategic initiatives.

Financial highlights

• Revenue: HK$82.3 million, down 18.3% year-over-year.

• Gross profit: HK$40.4 million, down 14.0% year-over-year; gross margin increased to 49.1% from 46.7%.

• Net profit: HK$31.6 million, down 8.7% year-over-year.

• Earnings per share: 3.95 HK cents, down from 4.30 HK cents.

• Cost of sales decreased 21.9% to HK$41.9 million.

• Other income fell 10.2% to HK$8.1 million, mainly due to lower service income and insurance compensation.

• Administrative expenses rose slightly to HK$19.2 million.

• Finance costs decreased to HK$196,000.

• Taxation decreased 10% to HK$4.8 million.

Outlook and guidance

• Construction sector in Hong Kong expected to remain steady to slow in the short to medium term.

• Government infrastructure pipeline and removal of cooling measures provide long-term support.

• Group will focus on cost management, customer diversification, and operational efficiency.

• Risks include interest rate trends, geopolitical tensions, and material cost fluctuations.