KARRIE INT'L Reports Record Annual Revenue and 48.3% Surge in Adjusted Net Profit

Stock News06-24

KARRIE INT'L (ASX: 01050) has announced its financial results for the year ended March 31, 2026. The company achieved revenue of approximately HK$3.47 billion, marking a 7% year-on-year increase. Net profit was around HK$271 million, up 32% from the previous year. The adjusted net profit reached approximately HK$303 million, representing a significant 48.3% rise. Basic earnings per share were 13.3 HK cents, a 32% increase. A final dividend of 4.5 HK cents per share was declared, up 50%, bringing the total annual dividend per share to 6 HK cents.

Record Revenue and Growth Drivers

During the review period, the group's revenue reached a multi-year high. This performance was primarily driven by increased demand for artificial intelligence-related server products. Notably, the bulk delivery of ASIC-related server products commenced in the second half of the fiscal year, which positively impacted the group's results. The proportion of AI-related products within the group's server chassis segment increased from about 3% for the year ended March 31, 2025, to approximately 12%, becoming a key factor in driving revenue and profit growth.

Factors Behind Profitability Improvement

The profit growth was attributed to higher revenue, an increased share of AI-related products, an optimized product mix, and improved operational efficiency, including contributions from the Thailand base. As the proportion of high-value-added structural components gradually rises, the group's long-term profitability is expected to improve further.

Strategic Advances in AI Supply Chain

The group made significant progress in the AI server supply chain during the year. It has been included in the supplier system for server chassis and cabinet components related to NVIDIA, actively participating in product development, sample delivery, and mold development for new-generation platform projects. Concurrently, the group has also served the demand from major cloud service platform (CSP) clients for ASIC-related servers and cabinet products. The group continues to engage with various original design manufacturers (ODMs), CSPs, and related ecosystem clients to secure more opportunities for new platforms and product introductions.

Capacity Optimization for Future Demand

To meet the growing demand for AI servers, cabinets, and related high-precision structural components, the group is continuously optimizing its production capacity layout. Its core technology and primary production platform in Fenggang, Dongguan, China, possesses comprehensive capabilities in mold making, metal stamping, CNC machining, injection molding, surface treatment, assembly, quality inspection, and logistics. The production base in Amata City Industrial Estate, Chonburi, Thailand, serves as a supplementary capacity platform, primarily supporting clients' regional delivery arrangements and enhancing supply chain resilience, thereby strengthening cross-regional delivery flexibility.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment