BOE Varitronix (0710) AI Stock Analysis

• Market Cap: HK$3.90B
• Dividend Yield: 3.25%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.31
• Revenue Growth: 19.25%
• EPS Growth: -10.14%
• Country: HK
• Employees: 7,392
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.23
• Shares Outstanding: 791,575,200
• 10 Day Avg. Volume: 2,943,239
• 30 Day Avg. Volume: 4,125,169
• PEG Ratio: -0.82
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$5.50 ▲(2.04% Upside)

The score is supported primarily by strong financial performance (solid growth, improving gross margin, and a low-leverage balance sheet) and favorable valuation (low P/E and ~3.43% dividend yield). These positives are tempered by weaker technicals, with the stock trading below key moving averages and only modest momentum signals.

Positive Factors

Revenue Growth

Near-20% revenue growth demonstrates durable demand for BOE Varitronix's displays across end markets. Sustained top-line expansion improves scale economics, supports continued R&D and capacity investment, and underpins longer-term margin and market-share gains.

Diversified End Markets

A broad customer base across consumer, automotive and industrial segments reduces reliance on any single cyclical market. Structural growth in automotive electronics and smart devices provides multi-year demand tailwinds, stabilizing revenues and easing cyclicality risks.

Low Financial Leverage

Very low leverage and a strong equity ratio give the company balance-sheet flexibility to fund capex, R&D and possible M&A without stress. This financial strength supports resilience through downturns and preserves strategic optionality over the medium term.

Negative Factors

Net Margin Compression

Declining net profit margin indicates rising costs or pricing pressure that erodes the benefit of revenue growth. If margin compression persists it will limit reinvestment, reduce free cashflow available for stakeholders and weaken sustainable profitability metrics.

EPS Contraction

Negative EPS growth despite strong revenue gains suggests profitability or non-operating headwinds. Continued EPS declines can constrain retained earnings, limit dividend or buyback capacity, and signal execution challenges in translating sales into shareholder value.

Moderate FCF Conversion

Although free cash flow rose, only a moderate conversion from net income to FCF leaves cash generation less reliable. Weaker conversion can restrict funding for capex, R&D and dividends over time and makes the business more sensitive to profit volatility.

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 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 Money

BOE Varitronix generates revenue through the sale of its display products and components to various industries, including consumer electronics, automotive, and industrial applications. The company's primary revenue streams include direct sales of LCDs, OLEDs, and touch panels to manufacturers and original equipment manufacturers (OEMs). Additionally, BOE Varitronix may engage in long-term contracts with clients that provide stable revenue over time. The company also benefits from strategic partnerships with technology firms and industry leaders, which enhance its market reach and product offerings. Factors contributing to its earnings include the growing demand for advanced display technologies, increasing adoption of smart devices, and the expansion of the automotive electronics market.

BOE Varitronix Financial Statement Overview

Summary

BOE Varitronix shows strong financial performance with robust revenue growth and improved gross profit margin. The balance sheet is stable with low leverage, and cash flow management is positive, though there is room for better alignment between profitability and free cash flow.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.96B	13.45B	10.76B	10.72B	7.74B	4.53B
Gross Profit	2.39B	2.23B	1.97B	881.45M	574.52M	231.23M
EBITDA	458.99M	691.12M	685.23M	843.21M	477.61M	218.89M
Net Income	399.66M	391.28M	475.26M	582.45M	327.80M	68.64M
Balance Sheet
Total Assets	11.83B	11.46B	10.03B	8.28B	5.54B	3.83B
Cash, Cash Equivalents and Short-Term Investments	4.80B	3.93B	3.57B	2.88B	2.27B	1.64B
Total Debt	463.41M	410.69M	642.00M	678.99M	22.55M	19.43M
Total Liabilities	7.12B	6.86B	5.62B	4.15B	2.20B	1.06B
Stockholders Equity	4.66B	4.54B	4.35B	4.06B	3.03B	2.71B
Cash Flow
Free Cash Flow	1.06B	888.97M	677.89M	-368.82M	439.13M	221.52M
Operating Cash Flow	1.27B	1.46B	1.19B	811.83M	690.43M	277.77M
Investing Cash Flow	-1.02B	-1.78B	-224.10M	-1.49B	-140.00K	-10.44M
Financing Cash Flow	-357.61M	-430.15M	-263.47M	1.38B	-69.86M	-215.93M

BOE Varitronix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0710, the sentiment is Negative. The current price of 5.39 is above the 20-day moving average (MA) of 5.19, above the 50-day MA of 5.05, and below the 200-day MA of 5.69, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 9.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0710.

BOE Varitronix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0710	78 Outperform	HK$3.90B	9.68	8.91%	3.25%	19.25%	-10.14%
0259	74 Outperform	HK$3.35B	0.89	108.05%	46.02%	12.26%	2497.49%
0040	69 Neutral	HK$667.84M	16.74	3.78%	3.73%	2.10%	―
0732	64 Neutral	HK$3.34B	12.76	2.87%	9.26%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1478	57 Neutral	HK$11.36B	20.88	9.13%	3.00%	17.21%	166.36%
6088	56 Neutral	HK$31.22B	26.34	6.17%	―	4.33%	-10.79%

BOE Varitronix Corporate Events

BOE Varitronix Steps Up Share Purchases to Fund Incentive Plan, Signals Confidence in Outlook

BOE Varitronix has disclosed that, on 12 January 2026, the trustee of its share award plan purchased 500,000 shares on the market, representing 0.063% of its issued share capital, at an average price of HK$4.90 per share and a total consideration of about HK$2.45 million. This brings the cumulative purchases under the plan between April 2025 and January 2026 to 6,683,000 shares, or 0.844% of the company’s issued shares, at an average price of HK$4.98 and total consideration of roughly HK$33.27 million. The purchases are intended to fund current and future grants under the company’s share award plan, which is designed to provide long-term incentives, strengthen employee retention and recruitment, and align management and employee interests with those of shareholders. The board has stated that the current share price does not reflect the company’s intrinsic value and business prospects, viewing the buy as an attractive opportunity that signals confidence in its outlook while maintaining a solid financial position, a stance that could support market perception and the group’s valuation over time.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$5.50 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Extends Connected Procurement Deal with BOE to 2027

BOE Varitronix has renewed its master framework agreement with its controlling shareholder BOE Technology Group, extending the term of their procurement arrangement by two years to 31 December 2027. Under the renewed framework, the group may continue to source products and services from the BOE group for the 2026 and 2027 financial years via specific contracts and purchase orders, while remaining free to transact with third parties. As BOE is a connected person under Hong Kong’s Listing Rules, the renewed agreement constitutes a continuing connected transaction subject to reporting, announcement and annual review requirements, but is exempt from circular and independent shareholder approval thresholds, signalling a continuation of the existing supply relationship without additional regulatory burden for investors.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enters Product Processing Agreement with BOE Vietnam

BOE Varitronix Limited has entered into a Master Product Processing Agreement with BOE Vietnam, effective from December 11, 2025, to December 31, 2027. This agreement allows BOE Vietnam to provide non-exclusive product processing services for manufacturing TFT/TP modules and other products. The transactions under this agreement are classified as continuing connected transactions under the Hong Kong Listing Rules, subject to reporting and annual review requirements but exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enhances Share Award Plan with Strategic Share Purchase

BOE Varitronix Limited has announced a share purchase under its Share Award Plan, acquiring 1,003,000 shares at an average price of HK$4.86 per share. This move aims to provide long-term incentives to key participants, aligning their interests with shareholders and enhancing the company’s market value. The Board sees this as a strategic opportunity to demonstrate confidence in the company’s business prospects while maintaining a solid financial position.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enhances Share Award Plan with Strategic Share Purchase

BOE Varitronix Limited announced the purchase of 997,000 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 expected to enhance the company’s market value and competitiveness, reflecting its confidence in its business prospects and maintaining a strong financial position.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enhances Share Award Plan with Strategic Share Purchase

BOE Varitronix Limited announced the purchase of 1,028,000 shares as part of its Share Award Plan, aimed at providing long-term incentives to key participants. This initiative is expected to align participant interests with shareholders, potentially boosting the company’s market value and demonstrating confidence in its business prospects.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Boosts Shareholder Value with Strategic Share Purchase

BOE Varitronix Limited announced a share purchase under its Share Award Plan, acquiring 972,000 shares, which represents 0.123% of the total shares in issue. This move is part of a strategy to provide long-term incentives to key participants, aligning their interests with shareholders and enhancing the company’s market value. The Board views this as a demonstration of confidence in the company’s business outlook and believes it will ultimately benefit both the company and its shareholders.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$6.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Boosts Share Award Plan with New Purchase

BOE Varitronix Limited announced a recent purchase of 300,000 shares as part of its Share Award Plan, which aims to incentivize and retain key personnel while aligning their interests with shareholders. This strategic move is expected to positively impact the company’s market value and demonstrates confidence in its business outlook, supported by the company’s solid financial position.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Enhances Share Award Plan with Strategic Share Purchase

BOE Varitronix Limited announced the purchase of 77,000 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 expected to positively impact the company’s market value and demonstrates confidence in its business prospects, while maintaining a solid financial position.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.