Link: https://links.sgx.com/1.0.0/corporate-announcements/6ZR0MTT37TZBR8DW/db2bbbc08ca3044d94e08a68ebaeade2e3d22d6254ccab5b848e36c614c06fc5

Summary:

• Revenue surged 28.5% to HK$6.36 billion (vs. HK$4.94 billion in 1H FY2024), led by robust sales of own-brand NVIDIA RTX 50 Series VGA cards, partly enabled by SGX secondary listing and new Batam, Indonesia facility.

• Profit attributable to owners rose to HK$250.4 million (vs. HK$194.1 million), with basic EPS at HK$0.645; interim dividend of HK$0.25/share declared.

• Gross profit increased to HK$669.5 million (+20%), though gross margin dipped to 10.5% due to higher material costs for RTX 50 Series cards and lower-margin mix.

• Segment highlights:

  • Own-brand VGA card revenue jumped 62%, +HK$1.88 billion, to HK$4.92 billion (78% of group sales), offsetting a 19% decline in ODM/OEM card sales and double-digit drops in EMS and other PC-related products.

  • Regional growth was strong in EMEAI (+46%), NALA (+45%), APAC (+18%), and PRC (+24%).

• Inventory rose 91% due to higher-value GPUs, longer logistics to Indonesia plant, and production ramp-up.

• Risks: heavy reliance on NVIDIA for GPUs, competitive industry, and exposure to global economic, supply chain, and regulatory uncertainties.

• Outlook: Continued demand for RTX 50 Series expected, ongoing cost focus, leveraging SGX listing and Batam facility for international growth, with cautious optimism amid market and supply constraints.