Analyst
Analyst
Key Calls
Plover Bay Technologies (1523 HK)
- Plover Bay Technologies saw robust shipment and revenue growth in 5M26, driven by solid demand across all verticals. By region, North America showed the strongest momentum while Europe and Asia also saw decent growth. We expect net margin expansion in 1H26 on the back of a stable gross margin and continued operating leverage.
- Recurring revenue from subscriptions continued to grow. We expect rising gross profit contribution from high-margin subscriptions and recurring revenue to account for 31.6%/51.1% of revenue/gross profit in 2026 (vs 30.2%/49.4% in 2025).
- Management expects the growth momentum to continue into 2H26, led by robust demand from North America. We forecast a 17% yoy revenue growth and 22% yoy net profit growth for 2026.
- Its share price has corrected by about 20% from its previous peak in June, which was largely related to SpaceX’s listing on Nasdaq. The company is currently trading at 20.5x 2026F PE and 4.6% dividend yield in 2026. We see short-term trading opportunities with its recent price correction and speculation on its 1H26 results to be announced on 30 July.
Key Calls
Plover Bay Technologies (1523 HK)
- Plover Bay Technologies saw robust shipment and revenue growth in 5M26, driven by solid demand across all verticals. By region, North America showed the strongest momentum while Europe and Asia also saw decent growth. We expect net margin expansion in 1H26 on the back of a stable gross margin and continued operating leverage.
- Recurring revenue from subscriptions continued to grow. We expect rising gross profit contribution from high-margin subscriptions and recurring revenue to account for 31.6%/51.1% of revenue/gross profit in 2026 (vs 30.2%/49.4% in 2025).
- Management expects the growth momentum to continue into 2H26, led by robust demand from North America. We forecast a 17% yoy revenue growth and 22% yoy net profit growth for 2026.
- Its share price has corrected by about 20% from its previous peak in June, which was largely related to SpaceX’s listing on Nasdaq. The company is currently trading at 20.5x 2026F PE and 4.6% dividend yield in 2026. We see short-term trading opportunities with its recent price correction and speculation on its 1H26 results to be announced on 30 July.
Analyst
Analyst
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