[UOB Kay Hian Exclusive] Listed Companies Seminar – BOE Varitronix (710.HK)

BOE Varitronix, formerly Varitronix International Limited, is a Hong Kong-based investment holding company. In 2016, BOE Group, one of the world's largest display manufacturers, became a major shareholder of the company. Now, BOEVx’s core businesses are automotive display and industrial display, products including digital instrument cluster display, center information display, HUD (head-up display), rear view and side view e-mirror display. The company is a key player in the smart auto market, operating businesses in China, Korea, Japan, Europe and America and have established strategic partnership with certain sizable Tier 1 customers in the automotive industry. Besides, the Company's shares have been included in the Hang Seng Index series constituent stocks and Hong Kong Stock Connect since March 2023.

Competitive Advantages	Leading Market Position The company is ranked no.1 in market share in the global market in terms of total shipment quantity, area and especially shipment for displays larger than 8 inches. The digitalization and upgrading of Human Machine Interface (HMI) experience in smart cockpit is becoming a major trend in the automotive industry. The need for larger-sized and more displays with more and more advanced display technologies in the cockpit has been increasing. The leading market position makes the company to be benefited from the major trend. Dynamic Product Mix and Strong R&D Capacities Screens in large size, free-form, curved and interactive become a new trend in smart vehicle cockpit displays. The company is dedicated to the development of next-generation automotive display technology and has a dynamic product mix. They include curved display, 3D display and smart surface display that users can get feedback and responses by activating through touch sensing, gestures or voice commands, which are widely used by electric vehicles. Strong Growth Momentum The company has achieved remarkable results in 2022 with record-high revenue and profit attributable to shareholders. The company’s total revenue has increased by 39% while the revenue from automotive display business even increased by 47% and the total net profit increased by 78%. Meanwhile, the company maintain a healthy financial situation, with long-term debt-to-equity ratio of 1.5% only.
Strategic Plan	The company is now a leading integrated automotive smart cockpit display system solution provider and has a roadmap in coming years to develop and strengthen their business in automotive display system riding on the latest technology development to enable them to further strengthen their position. Given the positive outlook of the automotive display business, the company has expanded TFT and touch panel display module manufacturing facilities in Chengdu, China. The company believes the expansion can allow them to capture upcoming business opportunities and further expand their market share with the completion of manufacturing facilities in the fourth quarter of 2022.
Market Capitalization	Around HKD 11 billion