VSTECS (856) H2 2025 earnings summary

Executive summary

• Revenue reached HK$97.63 billion in 2025, up 9.6% year-over-year, with net profit rising 28.7% to HK$1.35 billion and EPS at 97.68 HK cents, reflecting consistent growth and a strong 24-year track record.

• Return on equity was 13.8%, outperforming the Hang Seng average, and dividend per share was 41.77 HK cents.

• Focused on AI computing power, self-developed technology, and overseas expansion, including M&A opportunities in Southeast Asia.

• Expanded self-developed technology segment with a full range of AI products and solutions, including Cloud Star and Vclaw.

Financial highlights

• Revenue: HK$97.63 billion (2025) vs HK$89.09 billion (2024), up 9.6% year-over-year; net profit: HK$1.35 billion (2025), up 28.7%.

• Average annual revenue growth rate was 23%, and net profit CAGR was 28%.

• Net gearing to total assets stood at 0.09; current ratio at 1.31x.

• Inventory days reduced to 45, receivable days to 69, and working capital days to 46.

• Dividend payout and strong cash flow support ongoing investments.

Outlook and guidance

• Targeting 20% net profit growth annually over the next three years, in line with historical CAGR.

• 2026 revenue growth target is 50% year-on-year, and 2027 target is 120% year-on-year.

• Continued R&D investment, especially in AI agents, foundational models, and computing power orchestration, with planned R&D spend to double.

• Strategic expansion in China and Southeast Asia, with ongoing efforts to improve operational and financial efficiencies.

• Optimistic outlook for Q1 2026, with profitability and revenue growth expected to match or exceed 2025.