Comba Telecom Systems STC has announced earnings of HK$112 million ($19.3 million) for its 1HFY2023 ended June 30, a 24.1% increase over its earnings of HK$90 million in the corresponding period last year.
The telecommunications company, which is dual-listed on the Stock Exchange of Hong Kong (HKSE), also increased its earnings per share to 4.04 HK cents, up from 3.25 HKcents per share in 1HFY2022.
For the half-year period, Comba’s revenue was up by 6.1% y-o-y to HK$3.23 billion, while its cost of sales also increased by 8.3% to HK$2.38 billion compared to the same period last year.
The company’s gross profit stayed relatively flat at $849 million for 1HFY2023, increasing marginally from its gross profit of HK$847 million in 1HFY2022. Gross profit margin was down slightly by 1.5 percentage points to 26.3% in 1HFY2023 due mainly to a change in product portfolio and the increase in provision for a small amount of inventories.
Comba’s cash and cash equivalents stood at HK$1.56 billion as at June 30.
Meanwhile, an interim dividend of 1.2 HK cents has been declared for 1HFY2023.
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The company says that although the global operating environment remained uncertain as it entered 2023, various countries and regions have continued to improve their 5G infrastructure. In particular, with 5G licensing in China approaching its fourth anniversary, the three major operators in China are actively pushing forward the strategy of shifting the focus of the development of fundamental networks from extensive coverage to in-depth coverage.
Comba adds that a number of countries and regions are constructing 5G networks with continuous optimisation in industrial chain systems and ongoing technological upgrades and advancements.
As such, the company says it will continue to strengthen its independent R&D capabilities proactively while consolidating its existing operation achievements moving forwards.
Shares in Comba closed flat 20.5 cents on Aug 24.
