VSTECS Holdings Ltd reported first-half 2026 net profit attributable to shareholders of HKD 915 million, a 50% increase from the same period a year earlier, as revenue rose 15.6% to HKD 52.6 billion.
The distributor, listed on the Hong Kong stock exchange under ticker 0856, posted earnings per share of 65.95 Hong Kong cents and a return on equity of 18.1%. Gross profit margin narrowed to 4.5% while net profit margin stood at 1.4%, according to the earnings call transcript.
Regional performance diverged, with Southeast Asia revenue up 43.7% year-on-year to HKD 19 billion, driven by double-digit profit growth in Malaysia, Thailand, Singapore and Indonesia. North Asia generated HKD 33.5 billion in revenue, while the enterprise segment accounted for HKD 28.2 billion and consumer electronics for HKD 21.5 billion.
Management highlighted Chinese-brand export revenue growth of 48% year-on-year, which now contributes more than half of group profit. Inventory days increased to 60, attributed to proactive stocking for downstream partners amid supply chain constraints and price volatility.
Despite the earnings beat, VSTECS shares fell 5.59% to close at HKD 9.38, extending a decline from the prior session’s HKD 9.93 close. The stock has traded between HKD 7.25 and HKD 12.72 over the past 52 weeks.
Full-year 2026 revenue is expected to exceed HKD 100 billion, implying second-half revenue of at least HKD 47.4 billion. Management guided to normalized full-year profit growth of 20% to 30%, noting the 50% first-half surge is unlikely to persist at the same pace.
The company, which has paid dividends for 15 consecutive years, targets a payout ratio of 35% to 50%. VSTECS operates in nine Asia-Pacific countries, serving a population of 1.9 billion through more than 50,000 downstream partners.
