Plover Bay Technologies Ltd. (1523) AI Stock Analysis

• Market Cap: HK$6.92B
• Dividend Yield: 5.32%
• Average Volume (3M): 553.15K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.47
• Revenue Growth: 14.08%
• EPS Growth: 15.81%
• Country: HK
• Employees: 180
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.15
• Shares Outstanding: 1,103,696,000
• 10 Day Avg. Volume: 686,230
• 30 Day Avg. Volume: 553,148
• PEG Ratio: 0.48
• Price to Book (P/B): 11.33
• Price to Sales (P/S): 5.46
• P/FCF Ratio: 11.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$6.50 ▲(10.17% Upside)

Plover Bay Technologies Ltd. has a strong financial foundation with impressive revenue and cash flow growth, which is the most significant factor in its overall score. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's attractiveness. The valuation is reasonable, supported by a good dividend yield, but the lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Plover Bay's products, enhancing its market position and supporting long-term business expansion.

Cash Flow Generation

Substantial growth in free cash flow reflects excellent cash management, providing financial flexibility for investments and strategic initiatives.

Profit Margins

Strong profit margins demonstrate efficient cost management and pricing power, contributing to sustainable profitability and competitive advantage.

Negative Factors

Technical Indicators

Bearish technical indicators suggest potential investor caution, which may impact stock performance despite strong fundamentals.

Lack of Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of management's strategic direction and future outlook.

Absence of EBIT Data

Lack of EBIT data prevents a detailed analysis of operational efficiency, potentially obscuring insights into cost management and profitability trends.

Plover Bay Technologies Ltd. Business Overview & Revenue Model

Company Description

Plover Bay Technologies Limited, an investment holding company, designs, develops, markets, and sells software defined wide area network routers worldwide. It also provides software licences, and warranty and support services. The company markets and sells its products under the Peplink and Pepwave brands. In addition, it is involved in the property holding business. Plover Bay Technologies Limited was founded in 2006 and is headquartered in Lai Chi Kok, Hong Kong.

How the Company Makes Money

Plover Bay Technologies Ltd. generates revenue through several key streams. The primary source of income comes from the sale of its proprietary networking hardware, including routers and related devices, which are sold to businesses and telecommunications providers. Additionally, the company offers ongoing support and maintenance services, which create a recurring revenue model. Partnerships with major telecommunications companies and IT service providers further enhance its market reach and customer base, contributing to sales growth. Plover Bay may also explore licensing agreements or collaborations that leverage its technology, providing additional revenue opportunities.

Plover Bay Technologies Ltd. Financial Statement Overview

Summary

Plover Bay Technologies Ltd. exhibits strong financial performance with significant revenue growth of 23.91% and robust profit margins. The balance sheet is solid with a low debt-to-equity ratio and high return on equity. Cash flow generation is excellent, with a 50.90% increase in free cash flow. The absence of some EBIT data slightly limits the analysis but does not overshadow the company's overall financial health.

Income Statement

Plover Bay Technologies Ltd. has demonstrated strong revenue growth, with a significant increase from $94.26M in 2023 to $116.79M in 2024, marking a 23.91% growth. The gross profit margin is robust at 54.93%, and the net profit margin is healthy at 32.56% in 2024, indicating strong profitability. However, the absence of EBIT data for 2024 prevents a detailed analysis of operational efficiency for that year.

Balance Sheet

The company maintains a solid equity ratio of 51.11% and a low debt-to-equity ratio of 0.20 in 2024, suggesting a strong financial position with manageable leverage. The return on equity is impressive at 67.60%, indicating efficient use of equity to generate profits. The consistent increase in stockholders' equity over the years further supports financial stability.

Cash Flow

The free cash flow grew significantly by 50.90% from 2023 to 2024, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 1.45 in 2024 suggests effective conversion of income into cash. The free cash flow to net income ratio is also robust at 1.42, indicating excellent cash management and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.44M	116.79M	94.26M	86.76M	74.13M	52.82M
Gross Profit	67.37M	64.15M	50.91M	46.51M	43.16M	30.80M
EBITDA	52.81M	48.86M	33.44M	29.43M	27.21M	16.69M
Net Income	40.61M	38.05M	28.10M	22.66M	21.20M	14.23M
Balance Sheet
Total Assets	107.14M	110.11M	85.28M	83.29M	71.74M	59.31M
Cash, Cash Equivalents and Short-Term Investments	57.96M	65.93M	36.74M	28.66M	33.17M	32.54M
Total Debt	4.07M	11.10M	4.47M	8.72M	7.02M	4.50M
Total Liabilities	55.59M	53.81M	35.05M	40.00M	31.66M	23.47M
Stockholders Equity	51.56M	56.30M	50.22M	43.29M	40.08M	35.84M
Cash Flow
Free Cash Flow	44.53M	54.09M	35.84M	16.81M	18.35M	15.52M
Operating Cash Flow	45.59M	55.16M	37.72M	17.57M	18.92M	15.84M
Investing Cash Flow	1.10M	754.00K	-956.00K	-1.05M	-1.39M	-2.79M
Financing Cash Flow	-44.31M	-26.65M	-28.83M	-19.38M	-16.91M	-10.87M

Plover Bay Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1523, the sentiment is Negative. The current price of 5.9 is below the 20-day moving average (MA) of 6.06, below the 50-day MA of 6.42, and below the 200-day MA of 6.04, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 25.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1523.

Plover Bay Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0303	79 Outperform	$15.96B	14.20	23.17%	7.48%	-0.99%	-10.43%
1523	66 Neutral	HK$6.92B	21.84	78.00%	5.32%	14.08%	15.81%
2018	63 Neutral	$46.12B	19.76	9.39%	0.62%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6869	59 Neutral	HK$49.68B	42.76	4.79%	0.84%	14.38%	-41.96%
2000	52 Neutral	$811.07M	―	-0.25%	―	5.59%	-101.17%
2342	46 Neutral	$8.76B	―	-10.70%	0.22%	-13.99%	-32.74%