UOB Kay Hian
Date of Report: Tuesday, 19 August 2025
Hong Kong Small-Mid Caps: JBM Healthcare, Plover Bay Technologies & Launch Tech—Growth, Innovation, and Valuation Opportunities

Key Investment Highlights: A Deep Dive into Hong Kong’s Small-Mid Cap Leaders

This report takes a comprehensive look at three standout companies—JBM Healthcare, Plover Bay Technologies, and Launch Tech—highlighting their growth strategies, latest business updates, and compelling investment cases. Investors seeking promising opportunities in Hong Kong’s dynamic small-mid cap segment will find rich insights and actionable ideas for their portfolios.

JBM Healthcare (2161 HK): Brand Revitalization and Dividend Appeal

Modernizing Tradition: New Packaging for Po Chai Pills

JBM Healthcare has rolled out a fresh, modern packaging for its iconic Po Chai Pills, now offered in chain health and beauty stores such as Mannings and Watsons. The new design provides 12 convenient sachets per box (priced at HK\$60), replacing the previous format of 10 small bottles per box (priced at HK\$50). This change not only enhances usability but also aligns with JBM’s strategy to revitalize its brand image and capture the younger demographic.

Upcoming Marketing Initiatives to Drive Growth

JBM is preparing to launch robust marketing campaigns in the second half of 2025. Key initiatives include:

• New advertising push for Po Chai Pills in 3Q25
• High-visibility offline marketing, including sports event sponsorships and giant billboards for Flying Eagle

These efforts are expected to boost sales volumes of JBM’s flagship brands and further entrench their market positions.

Valuation and Dividend Yield: A Window to Accumulate

After a 15% share price correction from its early July peak, JBM Healthcare presents an attractive entry point for investors:

• FY26F dividend yield of 7.1% (assuming a 70% payout ratio)
• FY26F PE of 9.8x, below its historical mean of 11.3x (FY21-25)

Such metrics underscore the stock’s value and income potential, especially for yield-seeking investors.

Growth Outlook and Catalysts

Analysts remain bullish on JBM’s prospects, forecasting both revenue and net profit growth of 23% YoY in FY26. Growth drivers include:

• Ongoing, high-impact marketing campaigns to fuel flagship product sales (notably Po Chai Pills and Flying Eagle)
• Synergies from the acquisitions of Tin Hee Pills and Kenford Medical Group

A positive response to upcoming marketing efforts could act as a near-term catalyst for the share price.

JBM Healthcare Key Financials

Plover Bay Technologies (1523 HK): Software Ecosystem Expansion and Recurring Revenue Opportunity

Growth in Europe Offsets US Slowdown

Plover Bay Technologies maintains a positive outlook for the US market, despite a 6.4% YoY decline in 1H25, attributed to a high comparison base in 1H24 (boosted by Peplink-Starlink sales) and a one-month shipment delay due to trade uncertainties. In contrast, Europe delivered robust 39.2% YoY revenue growth in 1H25, thanks to:

• Strong transportation project deliveries
• High demand for Peplink products
• Expanding distribution channels

The company is focused on launching region-specific products to deepen market penetration.

Innovation in Connectivity: SpeedFusion Connect App

Plover Bay is strengthening its software ecosystem with the launch of the SpeedFusion Connect app for iOS and Android. This free, public app empowers users to combine mobile and Wi-Fi connections for a more reliable internet experience. Management is optimistic about the long-term opportunities in the SpeedFusion infrastructure market.

Recurring Revenue and Market Catalysts

As the Peplink user base grows, Plover Bay sees opportunities to expand recurring revenue by:

• Streamlining subscription sales and management for channel partners
• Adding new features and enhancing user experience
• Expanding SpeedFusion offerings beyond routers, including the mobile app

Potential collaborations with satellite providers are identified as a key catalyst for future growth.

Valuation

Plover Bay trades at 19.5x one-year forward PE, about one standard deviation above its historical mean of 12.8x (2018-25), reflecting investor optimism in its recurring revenue strategy and software ecosystem enhancements.

Launch Tech (2488 HK): Overseas Strength, AI-Driven Growth, and Shareholder Returns

Double-Digit Growth and Dividend Upside

Launch Tech posted a 10% YoY increase in revenue and a 28% YoY jump in net profit for 1H25, driven by:

• Robust overseas business expansion
• Strong performance in software and data segments
• Stringent cost controls and lower impairment losses

The interim dividend per share was 31.0 RMB cents, with a payout ratio of 65% (up from 55% in 1H24). The company also repurchased approximately 3 million shares in the first seven months of 2025, representing 0.7% of total shares outstanding.

AI-Powered Monetization and Training Initiatives

The value of software purchases soared 28% YoY to RMB 104 million in 1H25, thanks to a higher share of paid users utilizing behavior analytics and intelligent pricing (leveraging AI). Additional highlights:

• Remote diagnostic services revenue up 53% YoY to RMB 8.7 million
• Automotive data business revenue up 61% YoY to RMB 7.9 million
• 6,201 customer training sessions held globally in 1H25, more than double 2024’s 2,892 sessions

Launch Tech has also established an intelligent, localized, grid-based service system to enhance user satisfaction.

Growth Outlook and Catalysts

Management remains confident in continued growth for 2H25, supported by:

• Momentum in overseas markets
• Expansion of software and data services (including LAUNCH AI and the super remote diagnostics platform)
• Ongoing operating cost improvements

Approval for H-share full circulation is highlighted as a potential catalyst. The company currently offers a 5.9% trailing 12-month dividend yield.

Conclusion: Compelling Value and Growth Across the Board

JBM Healthcare, Plover Bay Technologies, and Launch Tech each present unique growth stories, from brand modernization and dividend appeal to international expansion and software-driven recurring revenues. Investors can find a blend of value, growth, and innovation across these names, making them worthy of close attention in the Hong Kong small-mid cap universe.