Ten Pao (1979) H1 2025 earnings summary

Executive summary

• Revenue increased by 19.3% year-over-year to HK$2,948.1 million for the six months ended 30 June 2025, driven by growth in industrial power supply and new energy segments.

• Operating profit rose 26.1% year-over-year to HK$252.3 million, with profit attributable to owners up 20.4% to HK$211.7 million.

• Basic earnings per share increased to HK21 cents from HK17 cents in the prior year period.

• Interim dividend declared at HK6.2 cents per share, up from HK5.2 cents, with a payout ratio of 30.2%.

• Strategic global expansion and R&D in AI, new energy, and smart controllers supported resilience amid trade tensions.

Financial highlights

• Gross profit margin declined to 17.9% from 20.3% year-over-year due to intensified competition, with gross profit at HK$526.7 million (+4.9% YoY).

• Operating profit margin improved to 8.6% from 8.1% year-over-year.

• Gearing ratio decreased to 29.9% from 35.1% at year-end 2024.

• Net cash generated from operating activities was HK$99.7 million, down from HK$332.9 million, mainly due to accelerated supplier payments.

• Net cash used in investing activities was HK$230.4 million, primarily for property, plant, and equipment.

Outlook and guidance

• The company expects persistent global policy uncertainty and inflation to continue impacting the business environment.

• Plans to leverage global production and sales network, focus on emission reduction, intelligent manufacturing, and expansion in new energy, AI computing power, and smart controllers.

• Will continue to invest in R&D for high-efficiency, innovative products and expand into Southeast Asian new energy markets.

• Anticipates stable capital expenditures and continued R&D investment.

• Aims to maintain stable growth through automation and digitalization.