July 3, 2023

Blue Power Group Limited (BPOW) reported for the Year ended April 30, 2023, a 66% increase in revenue totaling $871.32 million compared to $526.45 million in the corresponding period last year. Revenue for the fourth quarter had a 32% increase to close at $237.93 million compared to $179.93 million for the comparable quarter of 2022.

The cost of sales amounted to $661.58 million (2022: 373.42 million); this represents an increase of 77% year over year. Consequently, gross profit increased by 37% to $209.74 million compared to $153.02 million for the Year ended April 30, 2022. The company booked a gross profit of $81.85 million for the fourth quarter, versus $40.17 million reported for the similar quarter of 2022.

Impairment losses on investment decreased by 44% to close at $959,701 (2022: $1.71 million), while Administrative And Marketing Expenses decreased by 7% from $191.19 million in 2022 to $178.13 million in the period under review. As a result, profit from operations for the Year ended April 30, 2023, amounted to $29.79 million, a 15% decrease relative to the $35.12 million reported in 2022.

Finance income totalled $19.31 million, a 27% decrease from the corresponding period last year. (2022: $26.61 million).

Finance costs for the Year ended April 30, 2023, amounted to $7.25 million, a 136% increase relative to the $3.07 million reported in 2022. Finance costs for the fourth quarter amounted to $4.12 million (2022: $1.03 million).

Profit before Taxation for the Year ended April 30, 2023, had a 59% decrease to reach $86.36 million (2022: $209.09 million). Taxation for the year-end amounted to $4.95 million, a 68% decrease from the $15.56 million reported in 2022. For the fourth quarter, Taxation was $6.44 million (2022: $4.78 million).

Net Profit decreased by 58% to $81.41 million (2022: $193.54 million). Net Profit for the quarter totalled $52.21 million, compared to a net loss of $10.80 million booked in the prior year’s quarter.

Comprehensive income for the period totalled $81.41 million, relative to the $181.54 million reported twelve months prior.

Consequently, Earnings Per Share for the year-end amounted to $0.14 (2022: EPS: $0.34), while Earnings Per Share for the quarter totaled $0.09 (2022: LPS: $0.02). The twelve-month trailing EPS was $0.14, and the number of shares used in these calculations was 564,990,000.

Notably, BPOW’s stock price closed the trading period on June 30, 2023, at a price of $3.07 with a corresponding P/E ratio of 21.31x.

Balance Sheet Highlights

The company, as at April 30, 2023, recorded total assets of $1.61 billion, an increase of 14% when compared to $1.53 billion recorded last year. This was a result of the Company booking ‘Property, plant and equipment’ and ‘Inventories’ of $358.75 million (2022: $267.82 million) and $356.68 million (2022: $346.95 million).

Total Stockholders’ Equity as at April 30, 2023, closed at $1.50 billion (2022: $1.43 billion). This represents a book value per share of $1.06 (2022: $0.90).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.