Ten Pao (1979) H2 2025 earnings summary

Executive summary

• Revenue rose 3.2% year-over-year to HK$5,558.6 million, driven by growth in smart chargers, media & entertainment, and lighting segments.

• Gross profit decreased 3.5% to HK$1,011.6 million, with gross margin down 1.3 percentage points to 18.2%.

• Profit attributable to owners declined 0.9% to HK$380.6 million; basic EPS was HK36.9 cents, down from HK37.3 cents.

• Final dividend of HK6.6 cents per share proposed, with scrip option; total annual dividend HK12.8 cents, payout ratio 34.7%.

Financial highlights

• Operating profit increased 1.3% to HK$424.0 million.

• Profit before income tax slightly decreased by 0.2% to HK$426.2 million.

• Net finance income dropped to HK$2.2 million from HK$8.4 million due to higher interest expenses.

• Effective tax rate was 10.8%, reflecting preferential rates and utilization of tax losses.

• Total comprehensive income attributable to owners rose 24.2% to HK$430.5 million, aided by currency translation gains.

Outlook and guidance

• Expects long-term growth in industrial power supply, new energy, and consumer power supply segments, driven by energy transition, AI, and policy support.

• Plans to expand high-end smart controller business and green power product portfolio, targeting AI, IoT, and electric mobility markets.

• Anticipates continued investment in automation, intelligent manufacturing, and R&D to enhance competitiveness and efficiency.

• Capital expenditure expected to decline, supporting strong cash flow and reserves.