Broker: UOB Kay Hian
Date of Report: 15 July 2025

Asia’s Small-Mid Cap Stars: Crystal International, Horizon Robotics, Launch Tech & More – Latest Financial Insights and Growth Catalysts

Crystal International (2232 HK): Riding High on Strong Orders and Favorable Tariff Developments

Crystal International continues to demonstrate robust performance in 1H25, with all factories running at full capacity. The company has aggressively expanded its workforce, adding 1,000 workers in 1Q25 for a total of 76,000 by the end of March. Solid demand from European clients has led Crystal to exceed its original 2025 target of adding 4,000 workers, capitalizing on both rising demand across its five production bases and a reduced US tariff of 20% for Vietnam-sourced goods (compared to the previously announced 46% reciprocal tariff).

• Tariff Resilience: Crystal’s production and profitability remained shielded from recent US tariffs, as brand customers absorbed the cost and passed them onto end customers via higher average selling prices or reduced discounts.
• Strategic Shift: Orders were strategically reallocated to European customers, maintaining strong order placements.
• Vietnam Advantage: Vietnam accounts for 60% of Crystal’s total capacity and 80% of US-bound products are produced there. The company faces no impact from the 40% transshipment tariff, as all fabrics are sourced locally.
• Growth Forecast: Crystal is projected to achieve 11% year-on-year revenue growth and 15% net profit growth in 2025. The stock offers a compelling 7.5% dividend yield (assuming a 65% payout ratio) and trades at 8.7x 2025 forward PE, slightly above its historical mean of 7.9x (2018-2025).

Key Financials (US\$ million)

Revenue by Geography (2024):

• Asia Pacific: 40%
• North America: 38%
• Europe: 19%
• Others: 3%

Capacity by Region:

• Vietnam: 60%
• China: 15%
• Cambodia: 10%
• Bangladesh: 10%
• Sri Lanka: 5%

Catalysts for Crystal include stronger-than-expected order growth from key customers. The company’s dividend payout ratio is expected to remain at 65% through 2027.

Horizon Robotics (9660 HK): Dominating China’s Smart Driving Chip Market

Horizon Robotics stands out as a leading player in smart driving solutions, leveraging its proprietary Journey series hardware and advanced autonomous driving (AD) solutions. Its strength is rooted in high-performance, energy-efficient ADAS offerings, powered by a specialized AI brain processing unit (BPU) designed for low power, high throughput perception and decision-making.

• Market Outlook: The Chinese System on Chip (SoC) market is forecast to grow at a 33% CAGR from 2025-2027, with ADAS/AD solutions in China expected to expand at a 20% CAGR.
• Market Share: Horizon’s ADAS market share among Chinese OEMs is projected to rise to 54% in 2027 from 40% in 2024, thanks to a comprehensive, competitively priced product portfolio.
• OEM Penetration: Major OEMs like BYD are driving adoption of advanced smart driving features in EVs priced above Rmb100,000, with Horizon’s Journey solutions already in over 1 million BYD vehicles. The company anticipates further adoption in the Rmb100,000–200,000 price range, representing 38.5% of China’s total EV market.
• Product Launch: The latest Journey 6P hardware, boasting 560 TOPS computing power, is set to debut in Chery vehicles in 3Q25, with mass production expected in 2026 and shipments projected to reach 800,000 units by 2027.
• Financials & Outlook: Coverage is initiated with a BUY rating and a target price of HK\$7.45, based on a 10.1x 2027 EV/sales multiple (14.9x for 2026). Horizon aims to reach breakeven in 2028 with an anticipated net profit of Rmb1.2 billion.

Launch Tech (2488 HK): Expanding Globally with Strong Software Growth

Launch Tech has solidified its position as a global leader in vehicle diagnostic tools, having covered over 370 million vehicles worldwide by the end of 2024. The company’s growth strategy features proactive expansion across Europe, the US, and East Asia, with overseas revenue hitting a record HK\$1.3 billion in 2024 (69% of total revenue).

• Software Upswing: Software revenue surged 34% year-on-year to HK\$170 million in 2024, outpacing the 21% revenue growth in its main operations and contributing 9% of total revenue (up from 8% in 2023).
• Platform Monetization: Launch Tech began monetizing its super remote diagnostics platform in March 2024, generating Rmb12.99 million in service revenue and increasing transaction volume by 83% year-on-year.
• Flexible Manufacturing: Hardware products are manufactured by OEMs, with Launch Tech negotiating for contingency plans to optimize production and reduce costs, while seeking partners in low-tariff regions.
• Profit Outlook: The company remains positive about revenue and net profit growth, fueled by robust overseas sales, software, super remote diagnostics, and automotive data businesses, alongside strengthened cost controls.
• Dividend Policy: A generous payout ratio has been maintained—147% in 2023 and 80% in 2024. Additionally, the company repurchased 16.4 million shares in 2023 (10% of H shares) and 3.0 million shares in 5M25 (1.9% of H shares).

Launch Tech is trading at a trailing 12-month dividend yield of 4.7%. The announcement of a positive 1H25 profit alert is seen as a potential catalyst.

JBM Healthcare (2161 HK): Expanding Brands and Channels with Strategic Acquisitions

JBM Healthcare is set to launch a new wave of marketing campaigns in 2H25, focusing on the Po Chai Pills product line extension and Flying Eagle’s sponsorship of sports events for greater customer engagement. Offline marketing initiatives will include giant billboards at Star Ferry and interactive ads at High-Speed Rail stations.

• Tin Hee Tong Acquisition: Acquired in April 2025, JBM plans to boost Tin Hee Pills sales through enhanced distribution and creative marketing centered on brand storytelling.
• Kenford Medical Group Acquisition: In June 2025, JBM acquired a 100% interest in Kenford Medical for HK\$38 million (8.1x FY25 PE), with financial results consolidated from FY26 under the proprietary Chinese medicine segment.
• Synergies: JBM sees growth potential in Kenford’s OTC health products through supermarket channels and aims to cross-sell Hoi Tin brand CCMG via Kenford’s network. Kenford’s tuina (massage) services offer direct access to new customers for cross-selling signature products like Flying Eagle Woodlock Oil, with no additional staff costs expected.
• Valuation: The company trades at 10.2x one-year forward PE, near its historical mean of 11.4x (FY21-25). The rollout of impactful marketing campaigns is expected to be a key catalyst.

Jacobson Pharma (2633 HK): Strong Margin Expansion and Orphan Drug Catalyst

Jacobson Pharma recorded a 7.4% increase in FY25 revenue, reaching HK\$1,577 million, driven by both specialty medicines and a broader generic drug portfolio. Profit from continuing operations soared 43.1% to HK\$301 million, with operating margin rising 3.8 percentage points to 23.4%—a result of reduced selling, administrative, and finance costs.

• Orphan Drug Progress: Arsenol, developed in partnership with The University of Hong Kong, has secured Orphan Drug Designation from both the US FDA and the EMA. Registration trials are planned for 2026, with US FDA market authorization targeted for 1H28. Management is optimistic about Arsenol’s future revenue and profit contributions.
• Portfolio Expansion: Jacobson seeks to expand its biosimilars and specialty drugs offerings and is leveraging logistics partnerships (e.g., with Fosun Pharma) to launch supply chain and patient care services for CAR-T therapy.
• Dividend Policy: The FY25 DPS stood at HK\$0.15, reflecting a 99% payout ratio (60% regular, excluding special DPS; vs. about 40% in FY22-24). The company targets a 60% payout moving forward, considering capex for facility expansion.
• Valuation: Trading at an 8.8% trailing 12-month dividend yield (including special dividend). Faster-than-expected commercialization of ATO would be a key catalyst.

Nameson Holdings (1982 HK): Steady Orders and Growing Fabric Business

Nameson Holdings reported a slight 0.6% year-on-year decrease in FY25 revenue to HK\$4.35 billion, as a 9.6% decline in knitwear sales volume (due to seasonal delays) was partially offset by a 6% ASP increase from product mix improvements. Net profit dropped 6.6% to HK\$342 million, attributed to higher administrative expenses and reduced other gains.

• Order Confidence: Confirmed orders now cover 75% of projected FY26 orders. Management remains optimistic about upcoming order placements.
• Vietnam Expansion: Nameson is expanding manufacturing in Central Vietnam, leveraging the country’s cost advantages, improving infrastructure, and favorable US trade negotiations. The company is also shifting some cashmere yarn business to Vietnam.
• Fabric Business Momentum: For three consecutive half-years, the fabric business has shown improved quality and market acceptance, with more meaningful contributions expected in FY26.
• Dividend Commitment: Final FY25 dividend was HK\$0.015 (75% payout ratio), with a target to sustain generous dividends (vs. 96% in FY23 and 82% in FY24).
• Valuation: Nameson trades at a 14.3% trailing 12-month dividend yield. Faster-than-expected turnaround and fabric business expansion could act as catalysts.

Plover Bay Technologies (1523 HK): Sustained Growth and Starlink Collaboration

Plover Bay Technologies delivered strong shipment growth in 1H25, buoyed by solid orders from Europe and Asia. Demand for Peplink routers remained resilient despite US tariff uncertainties, with subscription take-up rates also improving compared to 34.1% at the end of 2024.

• Tariff Status: Peplink routers remain exempt from US reciprocal tariffs, with no price impact seen in 1H25. Distributors, initially cautious in April, began restocking in May to capitalize on a 90-day window before tariffs resume in August for most countries.
• Starlink Partnership: Product coverage expanded from high-end to mass-market enterprise Starlink dishes in 1H25, with shipments from this segment starting to make a meaningful contribution.
• European & Asian Strength: While US market uncertainties persist, Europe and Asia are expected to deliver solid results, supported by multi-year projects, strong end-user demand, and growing Peplink brand awareness.
• Profitability: Forecasts call for a 54.9% gross margin and 32.7% net margin in 2025, driven by higher subscription revenues and operating leverage.
• Valuation: Plover Bay trades at 17.0x one-year forward PE, about one standard deviation above its 2018–2025 historical mean of 12.7x. Further Starlink collaborations are seen as the main catalyst.

Conclusion: Resilient Growth and Strategic Opportunities Across Asia’s Small-Mid Cap Universe

Across the board, these Asian small- and mid-cap companies are demonstrating resilience and strategic agility—whether it’s through proactive workforce expansions, innovative product launches, global market penetration, or synergistic acquisitions. Investors should watch for catalysts such as tariff developments, new product rollouts, major customer orders, and continued expansion into high-growth markets, as these can provide substantial upside for well-positioned players in the region’s evolving economic landscape.