UOB Kay Hian
Date of Report: 19 August 2025
Greater China Small-Mid Cap Monthly: Key Investment Opportunities in JBM Healthcare, Plover Bay Technologies, and Launch Tech

JBM Healthcare (2161 HK): Poised for Growth with Brand Revitalization and Strong Dividends

Strategic Packaging and Marketing Initiatives

JBM Healthcare has taken decisive steps to modernize its iconic Po Chai Pills through a new packaging design now available at major chain health and beauty stores, including Mannings and Watsons. The updated packaging features 12 sachets per box (HK\$60) versus the previous 10 small bottles per box (HK\$50), providing greater convenience and a contemporary aesthetic aimed at revitalizing the brand and attracting younger customers.

• Upcoming marketing campaigns in the second half of 2025 will focus on Po Chai Pills, with notable initiatives set for the third quarter, including offline promotions, sports event sponsorships, and giant billboards for Flying Eagle.
• These efforts are expected to drive sales volume growth for JBM’s flagship products.

Valuation and Dividend Attractiveness

• JBM’s share price has recently corrected by approximately 15% from its July peak, providing an attractive entry point for accumulation.
• The company offers a compelling forecasted FY26 dividend yield of 7.1% (assuming a 70% payout ratio) and trades at 9.8x FY26F PE, slightly below its historical mean of 11.3x from FY21-25.
• This valuation, coupled with robust marketing and acquisition synergies, underpins expectations for strong revenue and profit growth.

Growth Forecasts and Catalysts

• Revenue and net profit are projected to increase by 23% year-over-year in FY26, supported by ongoing brand campaigns and synergies from the acquisitions of Tin Hee Pills and Kenford Medical Group.
• Potential catalysts include positive market reception to new marketing efforts.

Analyst Commentary

• JBM Healthcare’s consistent focus on marketing and product innovation, coupled with financial strength and attractive dividends, positions it as a compelling buy for investors looking for growth and yield.

Plover Bay Technologies (1523 HK): Expanding Global Footprint and Software Ecosystem

US Market Dynamics and European Strength

• Plover Bay Technologies is optimistic about its future in the US market, notwithstanding a 6.4% year-over-year revenue decline in 1H25 driven by short-term factors such as a high base effect from last year’s surging Peplink-Starlink sales and shipment delays caused by trade uncertainties.
• In Europe, the company posted robust 39.2% revenue growth in 1H25, propelled by strong deliveries for transportation projects, increased demand for Peplink products, and channel partner expansion.

Innovation in Software and Connectivity

• Plover Bay launched the free SpeedFusion Connect app for iOS and Android, allowing users to combine mobile and Wi-Fi connections for enhanced, reliable internet access.
• The company sees long-term potential in SpeedFusion infrastructure and aims to boost recurring revenue by streamlining subscription management for partners, rolling out new features, and expanding SpeedFusion beyond routers.

Valuation and Strategic Outlook

• Plover Bay trades at 19.5x one-year forward PE, about one standard deviation above its historical mean (12.8x for 2018-25).
• Future catalysts include potential partnerships with satellite providers.

Launch Tech (2488 HK): Profit Acceleration Through AI, Overseas Expansion, and Cost Controls

Strong Interim Results and Share Buyback

• Launch Tech delivered a 10% year-over-year increase in revenue and a 28% jump in net profit for 1H25, driven by overseas business momentum, expanding software/data segments, and disciplined cost management.
• Interim dividend per share was 31.0 Rmb cents, with a payout ratio at 65%, up from 55% in 1H24.
• The company repurchased around 3 million shares in the first seven months of 2025, representing 0.7% of total issued shares.

Digital Transformation and User Engagement

• The total value of software purchased climbed 28% year-over-year to Rmb104m in 1H25, supported by AI-driven user behavior analytics and intelligent pricing strategies.
• Remote diagnostic service purchases surged 53% to Rmb8.7m, while automotive data business revenue soared 61% to Rmb7.9m.
• Launch Tech held 6,201 global customer training sessions in 1H25, more than double the previous year, and established an intelligent, localized, grid-based service system to enhance user satisfaction.

Outlook and Valuation

• Management is confident in continued growth for 2H25, citing expansion in overseas business, the rising transaction volume on its super remote diagnostics platform, and ongoing operational efficiency improvements.
• Launch Tech offers a trailing 12-month dividend yield of 5.9%.
• Catalyst: Potential approval for H-share full circulation could further boost investor confidence.

Conclusion: Compelling Picks for Growth and Yield in Greater China Small-Mid Caps

JBM Healthcare, Plover Bay Technologies, and Launch Tech each present distinct but compelling investment cases. JBM stands out for its brand revitalization and dividend strength, Plover Bay for its global expansion and software innovation, and Launch Tech for its rapid profit growth and digital transformation. Investors seeking exposure to Greater China’s small- and mid-cap sector will find robust opportunities in these names, supported by clear strategies and healthy financials.