Hotung Investment Holdings (BLS) H2 2023 earnings summary

Executive summary

• FY2023 profit attributable to owners rose to NT$96.8m from NT$49.4m, primarily driven by gains from divestments; EPS increased to NT$1.02 from NT$0.52.

• Investment strategy remained cautious, with new investments of NT$153.4m, down 61.8% YoY; portfolio value closed at NT$4,579.8m.

Financial highlights

• Revenue rose 32.1% YoY to NT$325.6m, mainly from gains on divestments; operating profit was NT$198.3m versus NT$104.2m.

• Profit before tax was NT$198.2m versus NT$104.1m; profit attributable to owners was NT$96.8m versus NT$49.4m.

• Cash and cash equivalents increased to NT$1,817.9m from NT$1,568.1m, reflecting divestment proceeds and dividends paid of NT$241.9m.

• Net asset value per share was NT$63.70 versus NT$65.22; the decline followed the NT$2.55 per-share 2022 dividend payout.

Outlook and guidance

• 2024 investment focus includes AI, edge computing, AI applications in drug development and medical data, cybersecurity, sustainable energy, materials science and advanced semiconductors.

• Innovative startups in AI, biotechnology and renewable energy continued to attract investor interest; anticipated higher Asian interest rates may make funding for new VC funds more difficult.

• Board recommended a FY2023 dividend of NT$2.55 per share, subject to shareholder approval at the 2024 AGM.