Azeus Systems Holdings Ltd – 79.1% Net Profit Growth in 1H FY2025

Business Description

Azeus Systems Holdings Ltd is primarily engaged in the provision of IT services and cloud-based subscription services. The company operates two key business segments: IT Services and Azeus Products. Geographically, it has a presence across Hong Kong, Asia, United Kingdom, Europe, Middle East, Australia, New Zealand, Africa, and the Americas [[10]], [[17]].

Industry Position

The company is positioned as a provider of IT and cloud-based services. It competes with other IT service providers, but specific competitors or market share details are not provided in the report.

Revenue Streams

Azeus’s revenue streams include systems implementation and enhancement, sales of hardware and software, maintenance and support services, product licensing, and product services. Azeus Products accounted for 81.3% of total revenue in 1H FY2025, a significant increase from 74.7% in 1H FY2024 [[25]].

Financial Statement Analysis

Income Statement

The company reported a net profit of HK\$48.9 million in 1H FY2025, an increase of 79.1% from HK\$27.3 million in 1H FY2024 [[29]]. Revenue increased by 27.5%, primarily driven by the Azeus Products segment. Gross profit margin improved to 72.8% from 68.5% in the previous period [[26]].

Balance Sheet

As of 30 September 2024, the company’s total assets were HK\$375.4 million, with net assets of HK\$209.7 million, up from HK\$159.2 million as of 31 March 2024. This increase is attributed to the net profit earned during the period [[32]].

Cash Flow Statement

Net cash provided by operating activities was HK\$16.8 million, a decrease from HK\$20.9 million in the prior period. Despite this, the cash position improved by HK\$21.2 million, reaching HK\$204.6 million as of 30 September 2024 [[33]].

Dividend

An interim dividend of HK\$1.60 cents per ordinary share has been declared, compared to HK\$0.90 cents in the previous period [[34]].

Key Findings

Strengths: Significant net profit growth, strong revenue from Azeus Products, and increased dividend payout.

Risks: Decline in IT Services revenue, and lower cash flow from operating activities.

Special Activities

The company is focusing on expanding its geographical footprint and investing in a new ESG reporting platform, which is expected to drive future growth [[33]].

Investment Recommendations

If currently holding the stock: Consider continuing to hold due to strong profit growth and dividend payout.

If not holding the stock: Consider buying due to positive financial performance and growth prospects.

Disclaimer

This recommendation is based on the financial statements provided and should not be considered as financial advice. Investors should conduct their own research before making any investment decisions.

Report Date

The report is dated 14 November 2024, covering the financial period ending 30 September 2024 [[36]].

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