BOSA Technology (8140) H1 24/25 earnings summary

Executive summary

• Revenue for the six months ended 31 December 2024 was HK$39.9 million, down 19.3% year-over-year due to fewer new projects and customers.

• Net profit and total comprehensive income fell 28.4% to HK$9.9 million compared to the same period last year.

• The Group remains focused on mechanical splicing services for reinforced concrete construction in Hong Kong, serving both public and private sector projects.

• The Board maintains confidence in long-term growth, citing government infrastructure initiatives and anticipated interest rate reductions.

• No dividend was declared for the period.

Financial highlights

• Revenue decreased from HK$49.5 million to HK$39.9 million, a 19.3% decline year-over-year.

• Gross profit declined by 10.9% to HK$21.2 million.

• Net profit dropped from HK$13.8 million to HK$9.9 million, a 28.4% decrease.

• Earnings per share fell from 1.73 HK cents to 1.24 HK cents.

• Administrative expenses increased by 10.2% to HK$11.4 million, mainly due to higher staff costs.

Outlook and guidance

• Construction business in Hong Kong expected to remain steady to slow in the short to medium term.

• Government stimulus and infrastructure projects may support the sector, but high interest rates, US-China relations, and geopolitical tensions pose risks.

• Fluctuations in TWD and steel prices could impact material costs and gross margin.

• The Group will monitor pricing and costs to maintain reasonable margins.