BOE Varitronix Ltd (HK:0710)
:0710
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BOE Varitronix
(0710)
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Rating:63Neutral
Price Target:
HK$4.50
▲(1.12% Upside)
Action:DowngradedDate:04/26/26
The score is driven primarily by stable financial footing (low leverage and generally positive cash generation) but is held back by sharp 2025 margin compression and weaker free-cash-flow realization. Technicals are mixed-to-weak with the stock below key longer-term moving averages, while reasonable valuation and a ~3.87% dividend yield provide partial support.
Positive Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.07 in 2025) provides durable financial flexibility, lowering refinancing and covenant risk. A conservatively financed balance sheet supports capital allocation for product development, cushioning cyclicality in display demand and enabling measured dividend or buyback policies over the medium term.
Negative Factors
Sharp 2025 margin compression
A collapse in gross margin from ~17% to ~5% is a structural red flag: it suggests pricing pressure, cost inflation, or unfavorable product mix that erodes core profitability. If persistent, such margin damage reduces reinvestment capacity and weakens returns even if revenue stabilizes, harming long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.07 in 2025) provides durable financial flexibility, lowering refinancing and covenant risk. A conservatively financed balance sheet supports capital allocation for product development, cushioning cyclicality in display demand and enabling measured dividend or buyback policies over the medium term.
Read all positive factors
BOE Varitronix (0710) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.48B
Dividend Yield3.25%
Average Volume (3M)4.13M
Price to Earnings (P/E)11.7
Beta (1Y)1.28
Revenue Growth3.78%
EPS Growth-11.48%
CountryHK
Employees7,392
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.27
Shares Outstanding791,575,200
10 Day Avg. Volume2,943,239
30 Day Avg. Volume4,125,169
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)0.84
Price to Sales (P/S)0.29
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.90Price Target Upside32.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.61
Revenue Forecast (FY)HK$15.84B
BOE Varitronix Business Overview & Revenue Model
Company Description
BOE 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 provid...
How the Company Makes Money
BOE Varitronix primarily makes money by selling display products and solutions to customers (typically OEMs and industrial/consumer device manufacturers). Its core revenue stream is product sales of display modules (e.g., LCD modules and integrate...
BOE Varitronix Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.96B | 13.45B | 10.76B | 10.72B | 7.74B |
| Gross Profit | 760.60M | 2.23B | 1.97B | 881.45M | 574.52M |
| EBITDA | 414.47M | 691.12M | 685.23M | 843.21M | 477.61M |
| Net Income | 345.37M | 391.28M | 475.26M | 582.45M | 327.80M |
Balance Sheet | |||||
| Total Assets | 12.37B | 11.46B | 10.03B | 8.28B | 5.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.54B | 3.93B | 3.57B | 2.88B | 2.27B |
| Total Debt | 337.11M | 410.69M | 642.00M | 678.99M | 22.55M |
| Total Liabilities | 7.50B | 6.86B | 5.62B | 4.15B | 2.20B |
| Stockholders Equity | 4.81B | 4.54B | 4.35B | 4.06B | 3.03B |
Cash Flow | |||||
| Free Cash Flow | 524.63M | 888.97M | 677.89M | -368.82M | 439.13M |
| Operating Cash Flow | 888.47M | 1.46B | 1.19B | 811.83M | 690.43M |
| Investing Cash Flow | -269.93M | -1.78B | -224.10M | -1.49B | -140.00K |
| Financing Cash Flow | -257.80M | -430.15M | -263.47M | 1.38B | -69.86M |
BOE Varitronix Technical Analysis
Neutral
4.45
Price Trends
4.50
Negative
4.77
Negative
5.34
Negative
Market Momentum
-0.04
Negative
54.71
Neutral
89.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0710, the sentiment is Neutral. The current price of 4.45 is above the 20-day moving average (MA) of 4.25, below the 50-day MA of 4.50, and below the 200-day MA of 5.34, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 89.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0710.
BOE Varitronix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$3.03B | 12.09 | 2.88% | 9.26% | -7.51% | -6.59% | |
63 Neutral | HK$3.48B | 11.70 | 8.69% | 3.25% | 3.78% | -11.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | HK$60.70B | 19.84 | 13.73% | 1.84% | 1.34% | -17.40% | |
60 Neutral | HK$765.37M | 4.37 | 10.61% | ― | 70.12% | 112.02% | |
48 Neutral | HK$52.16B | 28.86 | 5.99% | ― | 12.30% | 1.48% |
* Technology Sector Average
HK:0710
BOE Varitronix
4.39
-0.92
-17.28%
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BYD Electronic (International) Co
26.94
-4.26
-13.65%
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Truly International Holdings
1.02
0.15
17.78%
HK:0334
China Display Optoelectronics Technology Holdings Ltd
0.37
0.16
78.92%
HK:6088
FIT Hon Teng Limited
7.35
5.43
282.81%
HK:6613
Lens Technology Co. Ltd. Class H
16.88
-2.60
-13.35%
BOE Varitronix Corporate Events
BOE Varitronix Buys Shares for Award Plan, Signals Confidence in Long-Term Prospects
Apr 24, 2026
BOE Varitronix Limited has disclosed that its trustee purchased 41,000 shares on the market between 20 April and 24 April 2026 under its share award plan, representing about 0.005% of its issued share capital, at an average price of HK$4.293 per s...
BOE Varitronix Sets 2026 AGM to Approve Dividend, Board Mandates and Share Buyback Authority
Apr 21, 2026
BOE Varitronix has called its annual general meeting for 25 June 2026 in Hong Kong, where shareholders will review the 2025 audited financial statements and vote on a proposed final dividend of HK$0.153 per share. Investors will also decide on the...
BOE Varitronix Buys Shares for Award Plan to Support Talent Retention
Apr 17, 2026
BOE Varitronix Limited has disclosed that its trustee purchased 255,000 shares on the open market between 13 April and 17 April 2026 under its share award plan, representing about 0.032% of its issued share capital at an average price of HK$4.252 ...
BOE Varitronix Buys Shares on Market to Fund Long-Term Incentive Plan
Apr 10, 2026
BOE Varitronix Limited has disclosed that its trustee purchased 204,000 shares on the market between 8 April and 10 April 2026 under its share award plan, representing about 0.026% of its issued share capital at an average price of HK$4.288 per sh...
BOE Varitronix Buys Shares for Award Plan, Signalling Confidence in Outlook
Apr 2, 2026
BOE Varitronix has disclosed that its trustee purchased 400,000 shares on the market between 30 March and 2 April 2026, representing about 0.051% of its issued share capital, at an average price of HK$4.065 per share for a total consideration of H...
BOE Varitronix Buys Shares to Fund Award Plan, Signal Confidence
Mar 27, 2026
BOE Varitronix has bought 100,000 shares on the market at an average price of HK$4.10 each, representing about 0.013% of its issued share capital, to fund current and future grants under its share award plan. The board says the purchase price unde...
BOE Varitronix Grows Revenue in 2025 but Profit Slips Amid Tougher Auto Market
Mar 23, 2026
BOE Varitronix reported 2025 revenue of HK$13.96 billion, up about 4% year-on-year, while EBITDA stayed broadly flat and profit attributable to shareholders fell 12% to HK$345 million, weighing on earnings per share and leading to a slightly lower...
BOE Varitronix Proposes Final Dividend for 2025 Financial Year
Mar 23, 2026
BOE Varitronix Limited has proposed a final ordinary cash dividend of HKD 0.153 per share for the financial year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 25 June 2026. The dividend, payable in Hong Kong do...
BOE Varitronix Sets March Board Meeting on 2025 Results and Dividend
Mar 11, 2026
BOE Varitronix Limited has scheduled a board meeting for 23 March 2026 to approve the consolidated final results for the year ended 31 December 2025. The board will also consider the payment of a final dividend and address other corporate matters,...
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.