BOSA Technology (8140) H2 25/26 earnings summary

Executive summary

• Revenue for the year ended 30 June 2026 declined by 20.3% to HK$65.6 million, mainly due to fewer new projects and reduced coupler sales, with net profit dropping 49.2% to HK$15.9 million year-over-year.

• Gross profit margin improved to 50.3% from 49.1% as cost reductions outpaced the revenue decline.

• The Group completed 149 projects (down from 203) and secured 132 new contracts (down from 157), with ongoing projects remaining stable at 134.

• No dividend was declared for the year.

Financial highlights

• Revenue: HK$65.6 million, down 20.3% year-over-year.

• Gross profit: HK$33.0 million, down 18.4% year-over-year.

• Net profit: HK$15.9 million, down 49.2% year-over-year.

• Basic and diluted EPS: HK1.99 cents, down from HK3.95 cents.

• Gross profit margin: 50.3%, up from 49.1%.

• Administrative expenses increased by 18.1% to HK$22.7 million.

• Bank balances and time deposits increased to HK$215.4 million.

• Current ratio improved to 12.0x from 9.9x; no bank borrowings or gearing.

Outlook and guidance

• The construction market is expected to remain steady to slow in the short to medium term, with government stimulus and public sector projects providing support.

• Risks include interest rate trends, US-China relations, geopolitical tensions, and material cost fluctuations.

• The Group will focus on cost management, customer diversification, and operational efficiency.

• Unused listing proceeds for land acquisition and R&D are expected to be fully utilized by 31 December 2028.