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, maintaining a strong 24-year growth track record.

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

• Expanded AI product and solution offerings, integrating domestic and overseas resources.

• Maintained stable profitability and high ROE (13.8%), outperforming industry averages.

• Gross profit grew to HK$4.35 billion and operating profit reached HK$1.99 billion, reflecting improved margins.

Financial highlights

• Earnings per share: HK97.68 cents; dividend: HK41.77 cents per share.

• Average annual revenue growth rate: 23%; net profit CAGR: 28%.

• Net gearing to total assets: 0.09 (2025); working capital days improved from 52 to 46.

• Inventory days reduced to 45; accounts receivable days down to 69.

• Shareholders’ funds increased to HK$10.14 billion; cash and bank balances at HK$4.91 billion.

Outlook and guidance

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

• 2026 revenue growth target: 50% year-on-year; 2027: 120% year-on-year.

• Strategic focus on AI computing power and overseas expansion, with ongoing operational improvements.

• Optimistic outlook for Q1 2026, expecting profitability and revenue growth at least matching 2025.