VSTECS (856) H2 2025 earnings summary

Executive summary

• Revenue reached HKD 97.63 billion in 2025, up 9.6% year-over-year, with net profit rising 28.7% to HKD 1.35 billion and EPS at 97.68 HK cents, reflecting improved margins and operational efficiency.

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

• The company is focused on AI and cloud services, leveraging in-house R&D, self-developed technology, and partnerships with major tech firms to drive growth.

• Strategic priorities include expanding AI computing power, self-developed technology, and overseas markets, with active M&A exploration.

• Achieved consistent and steady growth over 24 years, building a dual-track AI computing power ecosystem integrating domestic and overseas resources.

Financial highlights

• Revenue grew 9.6% year-over-year to HKD 97.63 billion; net profit increased 28.7% to HKD 1.35 billion; EPS at 97.68 HK cents; dividend per share was 41.77 HK cents.

• Gross profit reached HKD 4.35 billion; operating profit was HKD 1.99 billion.

• Working capital days improved from 52 to 46; inventory days down to 45; receivable days down to 69.

• Net gearing to total assets improved to 0.09; current ratio at 1.31x; shareholders’ funds increased to HKD 10.14 billion.

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

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-over-year; 2027 target is 120% year-over-year.

• Strategic focus on expanding AI computing power, product range, and overseas markets, with ongoing R&D investment and M&A exploration.

• Q1 2026 profitability and revenue growth expected to match or exceed prior year.

• Confident in continued business growth, supported by an experienced management team.