Hotung Investment Holdings (BLS) H1 2023 earnings summary

Executive summary

• H1 2023 revenue was NT$334.2m and profit for the period NT$179.2m, versus NT$160.9m and NT$32.3m in H1 2022; basic and diluted EPS rose to NT$1.83 from NT$0.13.

• Results were primarily driven by NT$271.7m of net gains on financial assets at FVTPL and NT$38.5m of distribution proceeds from fund investments.

Financial highlights

• Operating profit was NT$264.2m, versus NT$82.6m in H1 2022; finance costs were NT$23k, versus NT$53k.

• Tax expense increased to NT$85.0m from NT$50.3m, including NT$52.1m of deferred tax expense.

• Net cash from operating activities was NT$374.2m, versus NT$400.9m used in H1 2022; cash and cash equivalents ended June at NT$1,677.6m.

• Total comprehensive income was NT$216.1m, including NT$36.8m of translation gains; H1 2022 comprehensive income was NT$249.6m, including NT$217.3m of translation gains.

Outlook and guidance

• A cautious approach to new investments was adopted amid geopolitical tensions, suboptimal global demand and continued high technology-industry inventory depletion.

• No dividend was declared or recommended for H1 2023 on prudency grounds.