Comba Telecom Systems (2342) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was HK$2,199.2 million, down 6.2% year-over-year due to slower network construction by global telecom operators and a transitional phase in product upgrades.

• Gross profit increased 4.2% to HK$648.8 million, with gross margin rising to 29.5% from 26.6% year-over-year.

• Net profit attributable to owners/shareholders was HK$62 million, reversing a loss of HK$158.4 million in the prior period.

• Interim dividend of HK$0.6 cent per share declared, with a payout ratio of 28.7%.

• Operating cash flow increased to HK$451 million from HK$157 million year-over-year.

Financial highlights

• Revenue from Chinese telecom operators and China Tower fell 23.7% to HK$817.6 million, now 37.2% of total revenue.

• International revenue rose 13.5% to HK$1,106.1 million, now 50.3% of total revenue.

• R&D expenses dropped 29.5% to HK$161.9 million; S&D expenses fell 28.7% to HK$182.4 million; administrative expenses decreased 14.3% to HK$177.4 million.

• Finance costs increased 47.3% to HK$19.9 million.

• Other expenses decreased 46.2% to HK$67.2 million, mainly due to lower receivables provisions.

Outlook and guidance

• Focus remains on enhancing organizational performance, R&D, and product competitiveness.

• Plans to leverage new market opportunities and provide high-quality, cost-effective solutions to global operators.

• Management expects both opportunities and challenges ahead, focusing on global market expansion.