BOE Varitronix (0710) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: 2.97%
• Average Volume (3M): 13.07M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.37
• 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: 5,310,536
• 30 Day Avg. Volume: 13,074,768
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: 1.63
• 1Y Price Target: $8.87
• Price Target Upside: 60.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$7.00 ▲(26.58% Upside)

BOE Varitronix's strong financial performance is the most significant factor, supported by robust revenue growth and a solid balance sheet. The technical analysis indicates some short-term weakness, but the stock's valuation is reasonable with a decent dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Negative Factors

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 primarily through the sale of its LCD products and display solutions to a diverse range of industries. The company's key revenue streams include direct sales to automotive manufacturers for in-car display systems, sales to industrial clients for equipment displays, and consumer electronics markets for devices such as smartphones and tablets. Additionally, BOE Varitronix benefits from strategic partnerships and collaborations with technology companies, which help expand its product offerings and market reach. The company's ability to produce high-quality, customized display solutions enables it to maintain a competitive edge and capture a significant share of the market, thereby driving its financial performance.

BOE Varitronix Financial Statement Overview

Summary

BOE Varitronix displays a strong financial position with healthy revenue growth and operational efficiency. The company maintains a solid balance sheet with low leverage and good capital structure. Cash flow generation is robust, though there is potential 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.45B	10.76B	10.72B	7.74B	4.53B
Gross Profit	2.23B	1.97B	881.45M	574.52M	231.23M
EBITDA	691.12M	778.37M	843.21M	515.01M	218.89M
Net Income	391.28M	475.26M	582.45M	327.80M	68.64M
Balance Sheet
Total Assets	11.46B	10.03B	8.28B	5.54B	3.83B
Cash, Cash Equivalents and Short-Term Investments	3.93B	3.52B	2.88B	2.27B	1.64B
Total Debt	410.69M	642.00M	678.99M	22.55M	19.43M
Total Liabilities	6.86B	5.62B	4.15B	2.20B	1.06B
Stockholders Equity	4.54B	4.35B	4.06B	3.03B	2.71B
Cash Flow
Free Cash Flow	880.31M	677.89M	-368.82M	439.13M	221.52M
Operating Cash Flow	1.46B	1.19B	811.83M	690.43M	277.77M
Investing Cash Flow	-1.76B	-224.10M	-1.49B	-140.00K	-10.44M
Financing Cash Flow	-430.15M	-263.47M	1.38B	-69.86M	-215.93M

BOE Varitronix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.53
• 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:0710, the sentiment is Negative. The current price of 5.53 is below the 20-day moving average (MA) of 5.63, below the 50-day MA of 6.23, and below the 200-day MA of 6.23, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.93 is Neutral, 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
0259	80 Outperform	4.37B	1.58	77.81%	39.11%	10.88%	1523.33%
0710	73 Outperform	$4.38B	10.93	8.91%	2.97%	19.25%	-10.14%
6088	69 Neutral	45.76B	38.44	6.22%	―	4.33%	-10.79%
1478	67 Neutral	18.32B	35.89	5.48%	0.65%	17.21%	166.36%
0040	66 Neutral	613.69M	20.48	3.00%	3.68%	5.79%	―
0732	62 Neutral	3.59B	13.70	3.28%	8.55%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

BOE Varitronix Corporate Events

BOE Varitronix Passes All Resolutions at 2025 AGM

BOE Varitronix Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on June 25, 2025. The resolutions included the approval of audited financial statements, declaration of a final dividend, re-election of directors, and authorization of the board to fix directors’ remuneration. This outcome reflects strong shareholder support and is likely to positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$10.94 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.

BOE Varitronix Renews Subcontracting Agreement to Sustain Industry Growth

BOE Varitronix Limited has entered into a Renewed Master Subcontracting Agreement with its Purchasers to continue providing subcontracting services for manufacturing TFT/TP modules and other products from May 30, 2025, to December 31, 2027. This agreement, involving connected transactions under Hong Kong’s Listing Rules, allows BOE Varitronix to maintain its operational momentum and strengthen its industry positioning without being exclusively bound to the Purchasers, thereby offering flexibility to engage with other third-party customers.

The most recent analyst rating on (HK:0710) stock is a Buy with a HK$10.94 price target. To see the full list of analyst forecasts on BOE Varitronix stock, see the HK:0710 Stock Forecast page.