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BOE Varitronix Ltd (HK:0710)
:0710

BOE Varitronix (0710) AI Stock Analysis

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HK

BOE Varitronix

(OTC:0710)

Rating:79Outperform
Price Target:
HK$8.00
▲(18.34%Upside)
BOE Varitronix has a strong financial foundation, evidenced by robust revenue growth and a solid balance sheet. While technical indicators suggest bullish momentum, caution is warranted due to overbought conditions. Valuation remains reasonable, offering a balanced risk-reward for investors.
Positive Factors
Market Expansion
Management is positive on Vietnam’s capacity ramp-up and has already received orders from US and South Korean customers.
Sales Growth
BOEVx posted strong FY24 sales growth of 25% driven by automotive display and overseas market orders.
Share Buyback
BOEVx announced a share repurchase plan, demonstrating management's confidence in the business outlook.
Negative Factors
Profitability Challenges
Net profit missed mainly due to product mix shift, pricing pressure, higher inventory costs, and less government grants.

BOE Varitronix (0710) vs. iShares MSCI Hong Kong ETF (EWH)

BOE Varitronix Business Overview & Revenue Model

Company DescriptionBOE Varitronix Limited, an investment holding company, designs, manufactures, and sells liquid crystal display and related products in the People's Republic of China, Europe, the United States, South Korea, and internationally. It primarily provides thin film transistor modules. The company offers display products for use in automotive applications in digital instrument cluster display, center information display, HUD, and E-mirror products; and products for use in industrial applications, such as white goods, home automation, and other products. It also engages in the property holding business; and marketing and sales consulting activities. The company was formerly known as Varitronix International Limited and changed its name to BOE Varitronix Limited in July 2017. BOE Varitronix Limited was founded in 1978 and is headquartered in Kwun Tong, Hong Kong.
How the Company Makes MoneyBOE Varitronix makes money through the production and sale of its LCD products. The company's revenue model is primarily based on the sale of display panels and modules to original equipment manufacturers (OEMs) and other industrial clients. Key revenue streams include supplying the automotive industry with displays for dashboards and infotainment systems, as well as providing displays for industrial and consumer electronic products. The company benefits from strategic partnerships and collaborations with major technology and automotive firms, enhancing its market reach and product offerings. Additionally, BOE Varitronix invests in research and development to innovate and maintain a competitive edge in the display technology market.

BOE Varitronix Financial Statement Overview

Summary
BOE Varitronix displays a strong financial position with healthy revenue growth, improved gross profit margins, and a solid balance sheet characterized by low leverage and a healthy capital structure. While net profit margin slightly declined, the company maintains operational efficiency and robust cash flow generation.
Income Statement
85
Very Positive
BOE Varitronix has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin improved to 16.59% in 2024 from previous years, indicating better cost management. However, the net profit margin has slightly declined to 2.91% in 2024 from 4.42% in 2023, suggesting increased expenses or reduced cost efficiency. Nevertheless, the company's EBIT and EBITDA margins remain stable, reflecting consistent operational performance.
Balance Sheet
88
Very Positive
The company's balance sheet is robust, with a low debt-to-equity ratio of 0.09 in 2024, indicating low financial leverage. The equity ratio is strong at 39.57%, demonstrating a healthy capital structure. Return on equity (ROE) is moderate at 8.63% for 2024, which is a slight decrease from 10.91% in 2023, reflecting the decline in net income. Overall, the balance sheet reflects stability and low-risk financial management.
Cash Flow
82
Very Positive
BOE Varitronix's cash flow management is positive, with a substantial increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the free cash flow to net income ratio shows a moderate relationship between cash flow and profitability, signaling room for improvement in converting net income into free cash flow.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
13.45B10.76B10.72B7.74B4.53B
Gross Profit
2.23B1.97B881.45M574.52M231.23M
EBIT
437.45M569.72M528.65M289.13M42.57M
EBITDA
691.12M778.37M843.21M515.01M218.89M
Net Income Common Stockholders
391.28M475.26M582.45M327.80M68.64M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.93B3.52B2.88B2.27B1.64B
Total Assets
11.46B10.03B8.28B5.54B3.83B
Total Debt
410.69M642.00M678.99M22.55M19.43M
Net Debt
-2.29B-2.86B-2.14B-2.24B-1.61B
Total Liabilities
6.86B5.62B4.15B2.20B1.06B
Stockholders Equity
4.54B4.35B4.06B3.03B2.71B
Cash FlowFree Cash Flow
880.31M677.89M-368.82M439.13M221.52M
Operating Cash Flow
1.46B1.19B811.83M690.43M277.77M
Investing Cash Flow
-1.76B-224.10M-1.49B-140.00K-10.44M
Financing Cash Flow
-430.15M-263.47M1.38B-69.86M-215.93M

BOE Varitronix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.76
Price Trends
50DMA
5.68
Positive
100DMA
6.37
Positive
200DMA
5.96
Positive
Market Momentum
MACD
0.30
Negative
RSI
64.76
Neutral
STOCH
78.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0710, the sentiment is Positive. The current price of 6.76 is above the 20-day moving average (MA) of 6.12, above the 50-day MA of 5.68, and above the 200-day MA of 5.96, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0710.

BOE Varitronix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$5.64B14.358.79%2.67%24.98%-17.75%
68
Neutral
HK$1.80B11.836.31%2.56%-14.15%-63.50%
62
Neutral
HK$8.92B29.105.64%1.33%26.76%237.96%
62
Neutral
$11.97B10.08-7.46%2.96%7.37%-8.22%
$404.55M10.423.20%1.29%
55
Neutral
HK$17.29B14.376.27%5.75%18.75%
53
Neutral
HK$532.47M-25.77%10.17%3.64%-1468.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0710
BOE Varitronix
6.76
1.86
37.87%
HK:1478
Q Technology (Group) Co
7.43
3.29
79.47%
TRUHF
Truly International Holdings
0.13
0.06
85.71%
HK:0259
Yeebo (International Holdings) Limited
1.93
0.28
16.97%
HK:0040
Gold Peak Technology Group Limited
0.59
0.09
18.00%
HK:6088
FIT Hon Teng Limited
2.32
-0.52
-18.31%

BOE Varitronix Corporate Events

BOE Varitronix Renews Subcontracting Agreement to Sustain Industry Growth
May 30, 2025

BOE Varitronix Limited has entered into a Renewed Master Subcontracting Agreement with its Purchasers to continue providing subcontracting services for manufacturing TFT/TP modules and other products from May 30, 2025, to December 31, 2027. This agreement, involving connected transactions under Hong Kong’s Listing Rules, allows BOE Varitronix to maintain its operational momentum and strengthen its industry positioning without being exclusively bound to the Purchasers, thereby offering flexibility to engage with other third-party customers.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$10.94 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enhances Shareholder Alignment with Share Purchase
Apr 25, 2025

BOE Varitronix Limited announced the purchase of 200,000 shares as part of its Share Award Plan, representing 0.025% of the total shares in issue. This move is aimed at providing long-term incentives to key participants, aligning their interests with shareholders, and enhancing the company’s market value. The board believes this purchase reflects confidence in the company’s business prospects and will benefit both the company and its shareholders.

BOE Varitronix Enhances Shareholder Alignment with Share Purchase
Apr 24, 2025

BOE Varitronix Limited announced the purchase of 151,000 shares under its Share Award Plan to provide long-term incentives to key participants, aligning their interests with shareholders and enhancing the company’s market value. The Board believes this move reflects confidence in the company’s business prospects and will benefit both the company and its shareholders by improving competitiveness and retaining talent.

BOE Varitronix Enhances Share Award Plan with Strategic Share Purchase
Apr 23, 2025

BOE Varitronix Limited announced the purchase of 71,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants. This move is intended to align the interests of participants with shareholders, enhance market value, and reflect the company’s confidence in its business prospects.

BOE Varitronix Enhances Share Award Plan with New Share Purchase
Apr 17, 2025

BOE Varitronix Limited announced the purchase of 200,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants. This move is intended to align the interests of participants with shareholders and is seen as a demonstration of the company’s confidence in its business outlook, potentially benefiting both the company and its shareholders.

BOE Varitronix Boosts Share Award Plan with New Purchase
Apr 16, 2025

BOE Varitronix Limited announced a share purchase under its Share Award Plan, acquiring 97,000 shares to incentivize and retain key personnel, aligning their interests with shareholders. This move is seen as a demonstration of the company’s confidence in its business prospects and is expected to positively impact its market value.

BOE Varitronix Strengthens Market Position with Share Purchase
Apr 15, 2025

BOE Varitronix Limited announced a recent purchase of 31,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants and aligning their interests with shareholders. This strategic move reflects the company’s confidence in its business prospects and is expected to positively impact its market value, although future purchases will depend on market conditions.

BOE Varitronix Grants 3.3 Million Shares to Boost Talent Retention
Apr 14, 2025

BOE Varitronix Limited has granted 3,339,000 awarded shares to selected participants, including directors and employees, as part of its share award plan. This initiative aims to recognize and retain talent, aligning their interests with shareholders and enhancing the company’s market value through long-term incentives.

BOE Varitronix Announces Annual General Meeting with Key Resolutions
Apr 11, 2025

BOE Varitronix Limited has announced its upcoming annual general meeting scheduled for June 25, 2025, where key resolutions will be discussed. These include the approval of financial statements, declaration of a final dividend, re-election of directors, reappointment of auditors, and authorization for share repurchase and issuance. The decisions made at this meeting could impact the company’s financial strategies and shareholder value.

BOE Varitronix Enhances Share Award Plan with New Share Purchase
Apr 9, 2025

BOE Varitronix Limited announced the purchase of 160,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants. This move is intended to align the interests of participants with shareholders, enhance market value, and demonstrate confidence in the company’s business prospects.

BOE Varitronix Boosts Share Award Plan with Strategic Share Purchase
Apr 8, 2025

BOE Varitronix Limited announced the purchase of 173,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants and aligning their interests with shareholders. This strategic move is intended to enhance the company’s market value and demonstrate confidence in its business prospects, while also improving competitiveness by attracting and retaining talent.

BOE Varitronix Reports Revenue Growth Amid Profit Decline in 2024
Mar 26, 2025

BOE Varitronix Limited reported a 25% increase in revenue for the year ending 2024, reaching HK$13,449 million, primarily due to the growth in sales of TFT products and automotive system products. However, the company’s profit attributable to shareholders decreased by 18% to HK$391.3 million, impacted by changes in product mix, increased costs, and reduced government grants. Despite these challenges, the company maintained strong cash resources and reduced its bank loans by 39%, reflecting effective working capital management. The company is focused on reducing production and operating costs to improve profitability amidst geopolitical and market challenges.

BOE Varitronix Declares Final Cash Dividend for 2024
Mar 26, 2025

BOE Varitronix Limited has announced a final cash dividend of HKD 0.17 per share for the financial year ending December 31, 2024. The dividend will be paid on July 18, 2025, following shareholder approval on June 25, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders.

BOE Varitronix Schedules Board Meeting for Year-End Results
Mar 14, 2025

BOE Varitronix Limited has announced that its board of directors will convene on March 26, 2025, to approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend and address other corporate matters, potentially impacting the company’s financial strategies and shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.