Yeebo (International Holdings) Limited

Scope: FY2022 to FY2026, HK$ million. Sources: HKEX annual results announcements for FY2023 (19 June 2023) and FY2024 (28 June 2024); Interim Report 2025/26 (FY2025 balance sheet); FY2026 press release and Reuters / FilingReader summaries; Simply Wall St (EPS); PitchBook (USD aggregates); MarketScreener (net debt).

Income statement

Notes:

• FY2025 revenue is derived.

• FY2025 gross profit (130.2) is derived from H1 FY2025 gross profit of 82.0 (Interim Report 2025/26) plus H2 FY2025 gross profit of about 48.2, calculated from Google Finance half-year revenue and cost-of-sales data. Treat it as an estimate.

• FY2025 attributable profit (2,788.7) is derived from FY2026 attributable profit of 1,950.6 plus the disclosed decrease of 838.1 (FY2026 press release).

• Simply Wall St reports FY2024 EPS of HK$0.19.

• FY2026 net FVTPL gains of HK$2,630.0 million come from the FilingReader summary of the results announcement.

Notes: FY2024 and FY2025 EPS from Simply Wall St. FY2026 EPS (2.10) is derived from attributable profit of 1,950.6 divided by about 928 million weighted shares (H1 FY2026 weighted average of 927.4 million). The FY2023 special dividend was HK20 cents (declared November 2022).

Margins

Revenue CAGR from FY2022 to FY2026 is −1.7% a year (derived). Revenue CAGR from the FY2024 trough to FY2026 is +12.3% a year (derived).

Operating income and EBITDA. Group operating income on a conventional basis is not publicly disclosed in reviewed sources. PitchBook reports EBITDA, but its definition includes fair-value and disposal gains, which makes it uninformative about operations.

Commentary. Three distinct regimes are visible.

FY2022–FY2023, the cyclical peak: Display demand was strong after COVID (industrial, telecom, medical and smart-home restocking). Gross margin expanded to 16.8% in FY2023. Nantong Jianghai's equity-accounted contribution (HK$228.6 million in FY2023) roughly equalled the operating business's segment profit (HK$88.1 million) twice over.

FY2024, the destocking trough: Revenue fell 29.4% to HK$936.6 million as customers cut inventory and consumer-electronics demand weakened. H1 FY2024 revenue was down 30%. Profit fell to HK$186.8 million as associate income also dropped.

FY2025–FY2026, the transformation: Revenue recovered, driven by CTPs and then AI hardware and services. Gross margin, however, compressed to 10.7% because Suanova carries GPU depreciation and fixed costs ahead of revenue. Group depreciation rose from HK$39.8 million in H1 FY2025 to HK$54.5 million in H1 FY2026. Reported profit was dominated by investment accounting:

• In FY2025, the realised gain on the 15% Nantong Jianghai disposal, plus the reclassification of the remaining 13.81% to FVTPL.

• In FY2026, HK$2.63 billion of net FVTPL gains. The largest components were Nantong Jianghai (HK$1,292.1 million in H1 alone) and MetaX, whose fair value rose from HK$148 million at 30 September 2025 to about HK$1.53 billion at 31 March 2026 after its STAR listing.

Underlying operating profitability is thin. Segment profit was HK$3.3 million in H1 FY2026, and the core business effective tax rate was 9%.

Balance sheet

Notes:

• FY2024 and FY2026 total assets are converted from PitchBook US$ figures at about 7.82 and 7.815 HK$/US$ respectively. Treat them as approximate.

• FY2025 balance-sheet lines come from the audited 31 March 2025 comparative in Interim Report 2025/26.

• Net debt figures are from MarketScreener.

• Bank borrowings are from the FY2023 and FY2024 results and Interim Report 2025/26. All borrowings are repayable within one year at 2.5% (H1 FY2026).

• The Annual Report 2025/26 summary on minichart cites net assets attributable of HK$3,584.1 million "as of 31 March 2026". This equals the audited 31 March 2025 figure and is probably a transcription error. FY2026 equity is therefore left blank. The 30 September 2025 balance sheet showed attributable equity of HK$4,778.6 million.

Interim checkpoint, 30 September 2025: total assets HK$5,644.9 million; liabilities HK$784.2 million; total equity HK$4,860.7 million; cash HK$286.0 million; bank borrowings HK$12.7 million; FVTPL assets HK$4,228.0 million; deferred tax liabilities HK$398.7 million; current ratio 2.0; gearing 0.5% (Interim Report 2025/26).

Cash flow

Source: Interim Report 2025/26, condensed cash flow statement. Full-year FY2025 investing inflows included about RMB2.4 billion in disposal proceeds for the 15% Nantong Jianghai stake, partly offset by tax.

FY2025 repurchases totalled 12,318,000 shares for HK$35.27 million (Interim Report 2025/26, note 16).

Ratios

ROE figures are derived. Current ratio and gearing for FY2025 are from Interim Report 2025/26. At 30 September 2025 the current ratio was 2.0x and gearing 0.5%. ROA, ROIC, asset turnover and the cash conversion cycle cannot be computed reliably without full-year FY2026 statements.

Working-capital indicators at 30 September 2025: trade receivables HK$212.9 million (credit terms 30–150 days); inventories HK$172.9 million; trade payables HK$142.7 million. On H1 annualised revenue of about HK$1.11 billion and cost of sales of about HK$0.98 billion, this implies roughly 70 receivable days, 64 inventory days and 53 payable days, a cash conversion cycle of about 81 days (derived, approximate).

Ratio commentary. The group is functionally debt-free (gearing 0.5%). Interest expense is negligible: finance costs were HK$0.3 million in H1 FY2026 against HK$3.3 million in H1 FY2025, after the bridge borrowings were repaid. Net cash was about HK$650 million at FY2026 (MarketScreener). Liquidity tightened during FY2026: cash fell from HK$525 million to HK$286 million at the half-year as capex and AI investments outran operating cash flow, and the current ratio fell from 2.8x to 2.0x. Headline ROE is inflated by mark-to-market gains and says little about the operating franchise. The operating business is cash-consumptive at present: H1 FY2026 free cash flow was about −HK$125 million because of the AI build-out. That burn is funded by investment-portfolio monetisation (Nantong Jianghai sell-downs and dividends).

Management guidance

No quantitative guidance. Qualitative outlook:

Display: sustain market share; push CTP, automotive, engineering machinery, medical and commercial appliances; cut procurement costs.

AI: accelerate end-to-end domestic AI compute solutions for healthcare, financial services and AI4S; develop model tools (low-bit training, memory OS); act as "key coordinator" in the AI compute value chain through investments and partnerships.

• Management says the "long-term strategic importance of domestic compute capabilities remains compelling" (FY2026 press release).

Consensus

None available.

Bull case

1. Asset-backed deep value. Disclosed March 2026 stakes (Nantong Jianghai HK$3.3 billion, MetaX HK$1.53 billion) plus net cash of HK$0.65 billion exceed twice the HK$2.57 billion market cap. Continued disciplined sell-downs (RMB278 million in Q1 2026) can fund special dividends or buybacks and narrow the discount.

2. AI revenue inflection. AI revenue grew about 3.7 times to HK$159.3 million with over 90% utilisation across five clusters. An asset-light model (Harvest 5) and a token-based platform (cube-router.com) could lift returns on capital as fixed costs are absorbed.

3. Display mix upgrade. CTP growth (+43.9%) and the automotive entry, together with a European order recovery (+13.7%), could rebuild gross margin toward historical mid-teens levels once AI fixed costs are spread over more revenue.

Bear case

1. Earnings are mark-to-market noise. H1 FY2026 core segment profit was only HK$3.3 million and free cash flow was negative. Without investment gains the group is barely profitable and burns cash on GPU capex.

2. QingYue contagion. A CSRC penalty, suspension and possible delisting could wipe out a stake once worth HK$1.7 billion (March 2023) and HK$1.28 billion (September 2025), force impairments, and keep audit qualifications in play.

3. Holding-company discount is structural. A 61%-controlled register, a 27% free float, no analyst coverage, deferred tax on gains, and a capex-hungry AI strategy that recycles proceeds rather than returning them may keep the discount wide. The 50% one-year share price fall suggests the market doubts value realisation.

Key catalysts and monitorables (next 12 months)

Analyst verdict

Yeebo is no longer a display company with a few investments attached. It is an investment-rich holding company running a small, low-margin display manufacturer and a fast-growing but immature domestic AI compute operator. The FY2026 numbers capture the tension. Revenue grew 13.7% to HK$1,181 million and AI revenue rose about 3.7 times to HK$159 million, yet gross margin slipped to 10.7%. Core segment profit was close to zero at the half-year, and the reported HK$1.95 billion of attributable profit rested almost entirely on HK$2.63 billion of fair-value gains from Nantong Jianghai and MetaX.

The investment case therefore turns less on operating multiples than on two questions. Will the controlling shareholder and the new CEO, a career investment professional, turn paper value into shareholder value? And will the AI build-out earn its cost of capital?

On the first question, the evidence is mixed. The group has consistently monetised Nantong Jianghai over two decades. But it pays only HK5 cents a share in final dividends, recycles proceeds into new AI venture stakes, and carries rising deferred tax.

On the second, utilisation above 90% and asset-light managed deployments are encouraging. Even so, the AI unit's economics remain undisclosed and capex is running at about HK$240 million a year annualised.

The QingYue affair is a genuine overhang. It has already produced a qualified interim review, and with QingYue's shares suspended and a delisting risk flagged, an impairment is plausible. Its direct balance-sheet exposure, however, is limited (HK$294 million, about 5–6% of assets).

At HK$2.74 the stock trades at roughly half of an indicative NAV. That offers a margin of safety only for investors comfortable with controlled-company governance, illiquidity, and China AI and equity volatility. Verdict: a deep-value, event-driven special situation rather than a fundamental compounder. It is attractive if management commits to systematic capital return or crystallises the MetaX gains. It is otherwise likely to remain a value trap until the AI business shows profitability at segment level.