Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Plover Bay Technologies / Equity Bottom-Up

<ul>
<li>We expect strong 30-35% YoY earnings growth in <a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> for its earnings to be released in July for H1 FY24. </li>
<li>We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized). </li>
<li>Trading at 12.2x with &gt;50% ROEs and net cash of &gt;30 mn USD, we expect the strong results to catalyze a further multiple rerate.</li>
</ul>


We expect strong 30-35% YoY earnings growth in Plover Bay Technologies (1523 HK) for its earnings to be released in July for H1 FY24. 
We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized). 
Trading at 12.2x with &gt;50% ROEs and net cash of &gt;30 mn USD, we expect the strong results to catalyze a further multiple rerate.


Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue

<ul>
<li>
<a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> reported an 8.5%/ 24YoY increase in revenue/profits (%). Profits increased due to a net margin expansion of 370 bps to 29.8%. </li>
<li>The company had <a href="https://www.prnewswire.com/news-releases/peplink-is-the-first-authorized-starlink-technology-provider-302035263.html" target="_blank" rel="noopener">positive news in January</a> when <a href="https://www.starlink.com/" target="_blank" rel="noopener">Peplink</a> announced that it had agreed with SpaceX's <a href="https://www.starlink.com/" target="_blank" rel="noopener">Starlink</a> to become an authorized technology provider using Peplink SD-WAN routers.</li>
<li>Trading at 11x/10x PE FY23/FY24e, with an 8.2% trailing dividend yield and ~60% ROE, this is another growth/dividend gem worth exploring.</li>
</ul>



Plover Bay Technologies (1523 HK) reported an 8.5%/ 24YoY increase in revenue/profits (%). Profits increased due to a net margin expansion of 370 bps to 29.8%. 
The company had positive news in January when Peplink announced that it had agreed with SpaceX's Starlink to become an authorized technology provider using Peplink SD-WAN routers.
Trading at 11x/10x PE FY23/FY24e, with an 8.2% trailing dividend yield and ~60% ROE, this is another growth/dividend gem worth exploring.


Plover Bay 1523 HK: Solid FY23 Performance and Dividends, Rerating on the Cards

<ul>
<li>
<a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> is another exciting play from the stable of net cash (12% of market cap) and high dividend yield (8% FY22) companies.  </li>
<li>The company develops networking technologies that enable supercharged connectivity. Users can build always-on networks anywhere by combining fixed, mobile, and satellite connectivity. Its major brands are Peplink and Pepwave.</li>
<li>Plover Bay is a high net margin (25%) and high ROE (&gt;50%) business that has 9-10% CAGR revenue growth (trading at 11x PE) with catalysts up ahead. </li>
</ul>



Plover Bay Technologies (1523 HK) is another exciting play from the stable of net cash (12% of market cap) and high dividend yield (8% FY22) companies.  
The company develops networking technologies that enable supercharged connectivity. Users can build always-on networks anywhere by combining fixed, mobile, and satellite connectivity. Its major brands are Peplink and Pepwave.
Plover Bay is a high net margin (25%) and high ROE (&gt;50%) business that has 9-10% CAGR revenue growth (trading at 11x PE) with catalysts up ahead. 


Plover Bay (1523 HK): Interesting Net Cash /8% Dividend Yield Play/ With ROEs Above 50%

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<ul>
<li>The 2023 vintage of "5 High Conviction Ideas" was commodity heavy with 4 of our 5 picks coming from this sector. Three out of five declined between 15-25%. </li>
<li>Our best performer was unloved <a href="https://www.smartkarma.com/entities/mongolian-mining-corp" target="_blank" data-smartkarma-citation="entities:4382:1" rel="noopener">Mongolian Mining (975 HK)</a> which returned 234% even beating <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> YTD performance.  Miracles happen: Coal mining beats AI.</li>
<li>Our 2024 vintage of top ideas for the year will hopefully have a higher hit ratio. See below for more details which are our five high conviction ideas for 2024.</li>
</ul>


The 2023 vintage of "5 High Conviction Ideas" was commodity heavy with 4 of our 5 picks coming from this sector. Three out of five declined between 15-25%. 
Our best performer was unloved Mongolian Mining (975 HK) which returned 234% even beating NVIDIA Corp (NVDA US) YTD performance.  Miracles happen: Coal mining beats AI.
Our 2024 vintage of top ideas for the year will hopefully have a higher hit ratio. See below for more details which are our five high conviction ideas for 2024.


Overview of My Winners and Losers in 2023...and 5 High Conviction Ideas Going Into 2024

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

<div><div><div><div><ul><li>Plover Bay managed to post a satisfactory set of 1H23 results under the unfavourable global economy’s condition, with net profit increasing by 19.1% y/y to USD12.3mn, which was in line with our expectation.</li><li>Thanks to the wide adoption of its products across many industries, total revenue increased by 11.0% y/y.</li><li>Sales to EMEA grew 14.1% y/y, while sales to N. America increased by 11.3% y/y. An interim DPS of 7.01 HK cents was declared, translating into a payout ratio of 80% (1H22: 80%). </li></ul></div></div></div></div>

Plover Bay managed to post a satisfactory set of 1H23 results under the unfavourable global economy’s condition, with net profit increasing by 19.1% y/y to USD12.3mn, which was in line with our expectation.Thanks to the wide adoption of its products across many industries, total revenue increased by 11.0% y/y.Sales to EMEA grew 14.1% y/y, while sales to N. America increased by 11.3% y/y. An interim DPS of 7.01 HK cents was declared, translating into a payout ratio of 80% (1H22: 80%). 

Plover Bay Technologies Limited - 1H23 Net Profit in Line; Maintain BUY

Hong Kong

Plover Bay is the holding company of Peplink. Our vision is to make connectivity reliable through our ecosystem of enterprise LTE/5G routers and software services. Everyday, thousands of enterprises in retail, industrial, public safety, healthcare and government organizations use Peplink technologies in workplaces, factories, outdoor deployments, vehicles, ships, drones, and IoT systems to ensure their network connections are fast and reliable.

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Plover Bay Technologies (1523 HK)

Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue

We preview Plover Bay Technologies' (1523 HK) earnings. The stock is trading at 12.2x PE, net cash, and a dividend yield of 8.3%, with ROEs of over...

Sameer Taneja

Plover Bay 1523 HK: Solid FY23 Performance and Dividends, Rerating on the Cards

We summarize the Plover Bay (1523 HK) financial result for FY23. The stock trades at an undemanding 10.2x FY24 PE with an 8.2% trailing dividend...

Sameer Taneja

Plover Bay (1523 HK): Interesting Net Cash /8% Dividend Yield Play/ With ROEs Above 50%

Plover Bay Technologies (1523 HK) is another exciting play from the stable of net cash (12% of market cap) and high dividend yield (8% FY22)...

Sameer Taneja

Overview of My Winners and Losers in 2023...and 5 High Conviction Ideas Going Into 2024

Our stand-out performer in FY23 was little loved Mongolia Mining. For FY24 we provide five new names which we think can perform strongly.

Nicolas Van Broekhoven

Plover Bay Technologies Limited - 1H23 Net Profit in Line; Maintain BUY

Sales to EMEA grew 14.1% y/y, while sales to N. America increased by 11.3% y/y. An interim DPS of 7.01 HK cents was declared, translating into a...

Quam Securities

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