Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

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Plover Bay Technologies / Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> reported 9.9%/13.4% YoY revenue/net profit growth, led by growth from customers in the EMEA and Asia (with the US being a drag).</li>
<li>Earnings were more or less in line with our preview, <a href="https://www.smartkarma.com/insights/plover-bay-1523-hk-preview-on-earnings-for-h1-2025" target="_blank" data-smartkarma-citation="insights:187908" rel="noopener">Plover Bay (1523 HK): Preview On Earnings For H1 2025</a>, but revenues were slightly weaker, and margins were stronger.</li>
<li>The stock trades at 21.5x PE FY25e (assuming 15% growth), with a 4.4% dividend yield (assuming an 80% payout), but we acknowledge there could be upside to our earnings. </li>
</ul>



Plover Bay Technologies (1523 HK) reported 9.9%/13.4% YoY revenue/net profit growth, led by growth from customers in the EMEA and Asia (with the US being a drag).
Earnings were more or less in line with our preview, Plover Bay (1523 HK): Preview On Earnings For H1 2025, but revenues were slightly weaker, and margins were stronger.
The stock trades at 21.5x PE FY25e (assuming 15% growth), with a 4.4% dividend yield (assuming an 80% payout), but we acknowledge there could be upside to our earnings. 


Plover Bay (1523 HK): Slight Deceleration But Solid H1 FY25 And Optimistic Future Growth

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<a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" rel="noopener">Plover Bay Technologies (1523 HK)</a> reported 28.4%/55 % YoY revenue/net profit growth, led by growth from new customers in the US, Australia, and Europe. </li>
<li>The company reiterated its long-term guidance of reaching 300 mn USD revenue (FY23: 94 mn USD) in less than ten years. There was no clear guidance for FY24. </li>
<li>The stock trades at 14.8x PE FY24e, with a 5.4% dividend yield (assuming an 80% payout), and is at the cusp of an inflection in its growth. </li>
</ul>



Plover Bay Technologies (1523 HK) reported 28.4%/55 % YoY revenue/net profit growth, led by growth from new customers in the US, Australia, and Europe. 
The company reiterated its long-term guidance of reaching 300 mn USD revenue (FY23: 94 mn USD) in less than ten years. There was no clear guidance for FY24. 
The stock trades at 14.8x PE FY24e, with a 5.4% dividend yield (assuming an 80% payout), and is at the cusp of an inflection in its growth. 


Plover Bay (1523 HK): Solid H1 FY24, Inflection Point In Earnings

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<li>We expect strong 30-35% YoY earnings growth in <a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> for its earnings to be released in July for H1 FY24. </li>
<li>We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized). </li>
<li>Trading at 12.2x with &gt;50% ROEs and net cash of &gt;30 mn USD, we expect the strong results to catalyze a further multiple rerate.</li>
</ul>


We expect strong 30-35% YoY earnings growth in Plover Bay Technologies (1523 HK) for its earnings to be released in July for H1 FY24. 
We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized). 
Trading at 12.2x with &gt;50% ROEs and net cash of &gt;30 mn USD, we expect the strong results to catalyze a further multiple rerate.


Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue

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<li>
<a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> reported an 8.5%/ 24YoY increase in revenue/profits (%). Profits increased due to a net margin expansion of 370 bps to 29.8%. </li>
<li>The company had <a href="https://www.prnewswire.com/news-releases/peplink-is-the-first-authorized-starlink-technology-provider-302035263.html" target="_blank" rel="noopener">positive news in January</a> when <a href="https://www.starlink.com/" target="_blank" rel="noopener">Peplink</a> announced that it had agreed with SpaceX's <a href="https://www.starlink.com/" target="_blank" rel="noopener">Starlink</a> to become an authorized technology provider using Peplink SD-WAN routers.</li>
<li>Trading at 11x/10x PE FY23/FY24e, with an 8.2% trailing dividend yield and ~60% ROE, this is another growth/dividend gem worth exploring.</li>
</ul>



Plover Bay Technologies (1523 HK) reported an 8.5%/ 24YoY increase in revenue/profits (%). Profits increased due to a net margin expansion of 370 bps to 29.8%. 
The company had positive news in January when Peplink announced that it had agreed with SpaceX's Starlink to become an authorized technology provider using Peplink SD-WAN routers.
Trading at 11x/10x PE FY23/FY24e, with an 8.2% trailing dividend yield and ~60% ROE, this is another growth/dividend gem worth exploring.


Plover Bay 1523 HK: Solid FY23 Performance and Dividends, Rerating on the Cards

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<li>We expect the Trump tariffs announced on Taiwan (base for suppliers/production of Plover Bay) to slightly affect growth rates for H1 FY25 and estimate a 15%/13% YoY revenue/profit growth number. </li>
<li>A 32% tariff was imposed on Taiwan suppliers; however, electronic items, including routers, were subsequently excluded. Nonetheless, overall business sentiment had already been negatively impacted before these adjustments.</li>
<li>Trading at 19.4x FY25e earnings (assuming a reversion to 15% growth), the stock is somewhat fairly valued, although we love this name's execution and long-term track record. </li>
</ul>


We expect the Trump tariffs announced on Taiwan (base for suppliers/production of Plover Bay) to slightly affect growth rates for H1 FY25 and estimate a 15%/13% YoY revenue/profit growth number. 
A 32% tariff was imposed on Taiwan suppliers; however, electronic items, including routers, were subsequently excluded. Nonetheless, overall business sentiment had already been negatively impacted before these adjustments.
Trading at 19.4x FY25e earnings (assuming a reversion to 15% growth), the stock is somewhat fairly valued, although we love this name's execution and long-term track record. 


Plover Bay (1523 HK): Preview On Earnings For H1 2025

Hong Kong

Plover Bay is the holding company of Peplink. Our vision is to make connectivity reliable through our ecosystem of enterprise LTE/5G routers and software services. Everyday, thousands of enterprises in retail, industrial, public safety, healthcare and government organizations use Peplink technologies in workplaces, factories, outdoor deployments, vehicles, ships, drones, and IoT systems to ensure their network connections are fast and reliable.

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Plover Bay Technologies (1523 HK)

Plover Bay (1523 HK): Slight Deceleration But Solid H1 FY25 And Optimistic Future Growth

We review Plover Bay (1523 HK) H1 FY25 results and post-earnings call, expecting strong H2 2025 growth driven by key factors, with our rationale...

Sameer Taneja

Plover Bay (1523 HK): Solid H1 FY24, Inflection Point In Earnings

We summarize the earnings of Plover Bay (1523 HK) for H1 FY24. The company reached an inflection point with 28%/55% YoY revenue and profit growth.

Sameer Taneja

Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue

We preview Plover Bay Technologies' (1523 HK) earnings. The stock is trading at 12.2x PE, net cash, and a dividend yield of 8.3%, with ROEs of over...

Sameer Taneja

Plover Bay 1523 HK: Solid FY23 Performance and Dividends, Rerating on the Cards

We summarize the Plover Bay (1523 HK) financial result for FY23. The stock trades at an undemanding 10.2x FY24 PE with an 8.2% trailing dividend...

Sameer Taneja

Plover Bay (1523 HK): Preview On Earnings For H1 2025

We review the earnings for Plover Bay 1523 HK for H1 FY25, given the backdrop of trade wars. The stock has had a stellar run and is resilient...

Sameer Taneja

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