Plover Bay Technologies Ltd. (1523) AI Stock Analysis

• Market Cap: HK$7.46B
• Dividend Yield: 5.41%
• Average Volume (3M): 553.15K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.44
• 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: 1,104,900,000
• 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: HK$7.60
• Price Target Upside: 23.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$8.00 ▲(30.08% Upside)

Plover Bay Technologies Ltd. has a strong financial foundation with impressive revenue growth and cash flow management. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, mixed technical indicators suggest caution in the short term.

Positive Factors

Revenue Growth

Sustained double‑digit top‑line expansion demonstrates growing adoption of Plover Bay’s networking products across telecom and enterprise channels. Durable revenue growth supports reinvestment in R&D, scale economics and expansion of recurring support services over multiple quarters.

Profitability and Margins

High gross and net margins indicate differentiated products and pricing power in its market. Sustained margin levels provide a durable buffer against cost inflation, enable continued R&D and customer support investment, and support cash returns to shareholders over time.

Cash Generation & Balance Sheet

Strong cash conversion and a large FCF increase demonstrate excellent cash generation capacity. Alongside low leverage and a solid equity base, this provides durable financial flexibility for capex, product development, dividends or buffering cyclical downturns.

Negative Factors

Revenue Concentration in Hardware

Heavy reliance on hardware sales exposes revenues to customer capex cycles and replacement timing. Even with support services, hardware dominance limits recurring revenue predictability and can amplify volatility in demand and near‑term cash flows across quarters.

Incomplete Operational Disclosure

Missing EBIT figures and limited earnings‑call detail reduce transparency around core operating performance and cost structure. This hinders robust assessment of sustainable operating margins and makes durable forecasting of profitability less reliable.

End‑market Concentration & Cyclicality

Concentration in telecom and enterprise markets leaves the business exposed to sector capex cycles and procurement timing. Large customer wins or pullbacks can materially swing revenue, prolong sales cycles, and increase growth variability over multiple quarters.

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, robust profit margins, and excellent cash flow management. The balance sheet is stable with low leverage and high equity ratio, although the absence of some EBIT data slightly limits the analysis.

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: Positive
• Last Price: 6.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 6.15 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 6.28, and below the 200-day MA of 6.23, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 63.00 is Neutral, neither overbought nor oversold. The STOCH value of 73.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	HK$15.67B	13.92	23.17%	7.66%	-0.99%	-10.43%
1523	72 Outperform	HK$7.46B	23.51	78.00%	5.41%	14.08%	15.81%
6869	65 Neutral	HK$108.07B	103.12	4.79%	0.54%	14.38%	-41.96%
2018	63 Neutral	HK$43.33B	18.56	9.39%	0.63%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2000	52 Neutral	HK$666.36M	-185.29	-0.25%	―	5.59%	-101.17%
2342	46 Neutral	HK$6.86B	-17.89	-10.70%	0.24%	-13.99%	-32.74%

Plover Bay Technologies Ltd. Corporate Events

Plover Bay Subsidiaries Renew Related-Party Leases Worth HK$17.8 Million

Plover Bay Technologies’ indirect wholly owned subsidiaries Pegatrack and PismoTech have renewed leasing arrangements with entities owned by chairman and controlling shareholder Mr. Chan, securing office, warehouse and product development premises for a further two-year term from 1 January 2026 to 31 December 2027. The transactions, which will result in recognition of right-of-use assets of about HK$17.82 million under HKFRS 16, are classified as connected transactions under Hong Kong listing rules and therefore require announcement and reporting but are exempt from circular and independent shareholders’ approval, underscoring the group’s continued reliance on related-party properties while maintaining regulatory compliance.

The most recent analyst rating on (HK:1523) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on Plover Bay Technologies Ltd. stock, see the HK:1523 Stock Forecast page.

Plover Bay Tightens Governance With Updated Risk Management Committee Mandate

Plover Bay Technologies Limited has revised and adopted updated terms of reference for its Risk Management Committee, effective 23 December 2025, to strengthen oversight of the group’s risk management framework. The committee, which must comprise at least three board-appointed members and meet at least annually, is tasked with providing leadership, direction and oversight on the company’s overall risk appetite, tolerance and strategy, including material climate-related, environmental, social, governance and operational risks. It will advise the board on the likelihood and impact of principal risks and their mitigation, and ensure governance mechanisms are in place to integrate climate-related risks and opportunities into the company’s risk management processes, reinforcing the company’s governance structure and alignment with Hong Kong listing requirements.

The most recent analyst rating on (HK:1523) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on Plover Bay Technologies Ltd. stock, see the HK:1523 Stock Forecast page.