Keen Ocean International (08070) reported robust interim results for the six months ended 30 June 2026, driven by stronger demand and a higher-margin product mix.
Financial Highlights (YoY) • Revenue: HK$214.65 million, up 56.5% from HK$137.08 million. • Gross profit: HK$54.32 million, up 83.4%; gross margin expanded to 25.3% (1H25: 21.6%). • Net profit: HK$22.98 million, up 161.2% from HK$8.80 million. • EPS: HK$0.1149 versus HK$0.0440.
Revenue Mix • Electronic parts & components contributed 71.8% of sales (HK$154.23 million), almost doubling from a 49.9% share a year earlier. • Transformers accounted for 27.2% (HK$58.34 million), down from 49.0%. • Switching mode power supplies represented 1.0% (HK$2.08 million).
Regional Sales • Europe led with HK$146.10 million, followed by Mainland China (HK$23.37 million) and the United States (HK$13.93 million).
Cost and Expense Dynamics • Cost of sales rose 49.1% to HK$160.33 million, below revenue growth, reflecting improved product mix. • Selling and distribution expenses increased 33.6% to HK$5.77 million; administrative expenses rose 25.6% to HK$20.09 million. • Other income fell 45.1% to HK$2.53 million due to lower machinery-trading gains; foreign-exchange–driven other losses widened slightly to HK$2.93 million. • Finance costs edged up 5.4% to HK$0.59 million; income tax expense jumped 164.7% to HK$4.50 million, in line with higher earnings.
Balance Sheet & Cash Flow • Net assets: HK$159.91 million (31 Dec 2025: HK$126.26 million). • Net current assets: HK$112.94 million (31 Dec 2025: HK$79.68 million). • Cash and bank balances: HK$21.72 million; short-term deposits: HK$79.83 million. • Gearing ratio remains at zero; cash and deposits exceed interest-bearing borrowings. • Net operating cash inflow reached HK$27.07 million (1H25: HK$13.88 million). • Capital expenditure totalled HK$4.04 million, mainly for plant and equipment.
Operational Developments • Headcount rose to 597 (31 Dec 2025: 568); staff costs increased 20.6% to HK$32.35 million. • The Group invested in new production lines for inverter components targeting clean-energy and electric-vehicle markets and initiated trial production via a strategic partner in Vietnam to mitigate U.S. tariff exposure.
Outlook Management expects incremental sales from newly developed inverter models for European clients and growing orders for EV inductors. Efficiency and cost control remain priority areas amid global economic headwinds.
Dividend No interim dividend was declared for 1H26 (1H25: nil).
Other Matters • The Share Option Scheme adopted in 2016 expired on 2 February 2026; no options are outstanding. • No material acquisitions, disposals, contingent liabilities or capital commitments were reported during the period.