Azeus Systems Holdings (SGX:BBW
) has reported earnings of HK$134.7 million, down 19% y-o-y for FY2026 ended March 31.
Total revenue was down marginally by 2% y-o-y to HK$466.8 million. The lower revenue was due to lower revenue contribution from its IT Services segment, while partially mitigated by a higher revenue from the Azeus products segment.
Revenue from Azeus products segment increased 3% y-o-y to HK$403.6 million in FY2026, mainly driven by revenue contribution from its proprietary product “Convene”.
Revenue from IT Services segment decreased 24% y-o-y to HK$63.2 million in FY2026. Revenue was lower due to lesser IT Services projects and enhancement services secured during the year.
Cost of revenue remained stable at HK$111.1 million and gross profit margin was slightly lower at 76.2% in FY2026, compared to 76.6% a year ago.
Profit before tax declined 22% y-o-y to HK$151.9 million in FY2026, mainly due to higher research and development expenses for product improvements and exploration of new technologies.
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As at March 31, Azeus Systems' balance sheet has no bank borrowings or debt securities and has net cash position stood at HK$249.9 million, 8% lower y-o-y, due to payment of higher dividends for both FY2025 final dividend and partial payment of FY2026 interim dividend, as well as a higher tax prepayment compared to the previous reporting period.
Azeus Systems has proposed a final dividend of HK$2.80 per share and this brings its total dividend per share for FY2026 to HK$4.40, which represents a dividend payout ratio of 99%.
“The group continues to generate strong cash flow, underpinned by disciplined operations and recurring revenue streams. We remain committed to expanding our product offerings and strengthening our presence in new markets,” says Lee Wan Lik, Azeus Systems’ executive chairman and director.
“The group has started investing in AI, making “AI-first” and “AI-native” core tenets of all our new product offerings. We are also adopting effective application of AI across all aspects of our operations from marketing to sales, customer care to support, and in our software development processes,” adds Michael Yap, CEO of Azeus Systems.
Meanwhile, Azues Systems says that it is currently in discussion with customer to resolve the basis of the license fee computation. “Depending on the timing and outcome of these discussions, there may be a material adverse impact on the remaining revenue to be recognised in FY2027,” the group states.
Shares of Azeus Systems closed 3 cents lower, or 0.26% down at $11.50 on May 29.
