top of page

Pax Global – 2021 Earnings – Solid growth, with no surprises

Pax Global released its 2021 financial results in late March 2022, and overall it’s a good set of results, with no unexpected surprises.

Revenue grew y/y by 27% to HKD 7.2 billion, with the fastest growth in North America (+56% to HKD 0.8 billion) and EMEA (+48% to HKD 1.9 billion), and with the Android terminal sales growing rapidly at 78% (to HKD 3.2 billion). Gross profit grew slower at 21% (with a gross profit margin of 39%), due to RMB appreciation and increase in raw material prices. EBITDA grew 18% and net profit grew 21% (to HKD 1.1 billion, with a 15% net profit margin).

Some notable points include:

  1. The number of Android smart terminals connected to PaxStore platform has more than doubled y/y, to 4.4 million terminals, and might support some long term revenue growth in the future (although the SaaS solutions revenue at this stage was still relatively low despite a 193% y/y growth).

  2. On the recent FBI investigation into Pax Global’s US office, there have been no adverse developments since then and the company does not expect any material financial impact from the incident. We also note that Bank of America, a major bank in the U.S., is still using and promoting Pax Global’s terminals (for its small business operations, on its website).

Since then, Pax Global has also enhanced the work on its industry security standards, including by regularly cooperating with reputable cybersecurity firms to conduct product penetration & software testing.

For the remaining points of this article, check them out at our Multibagger Research Series at https://learn.moneywisesmart.com/courses/multibagger-research-series/lectures/39072737  

For our free analysis of other high quality companies, check them out at our free Research Series (linked below).

For our summary analysis of the company, check out the video below.

Subscribe here if you want to be notified of future posts!

P.S. Do join our investment forum on Facebook too where we discuss interesting investment concepts and ideas. If you have enjoyed this article, you will enjoy our other articles here.

 
 
 

Comments


bottom of page