Karrie International predicts AI-related products to make up 50pc of revenue in future years

Nvidia supplier Karrie International (1050) predicts AI-related products to account for up to 50 percent of revenue within two to three years, according to chief financial officer Murphy Wong. 

With a positive outlook for the future, the company is in talks to acquire two potential die-casting companies. 

The company saw a gross profit leap of 21 percent attributed to growth in AI products and improved operational efficiency, with a revenue hike of seven percent year-on-year to HK$3.47 billion for the year ended March 31, 2026, as announced on Wednesday night. 

Net profit rose 1.5 percentage points to 7.8 percent. 

The Board recommended a final dividend of 4.5 HK cents per ordinary share, bringing the total dividend for the year to HK$0.06 per share, a payout ratio of 45 percent.

Gross margin improved by 1.8 percentage points to 16.4 percent, with operating profit jumping by 34 percent to HK$382.5 million.

Adjusted profit for the year increased by 48 percent to HK$303 million.

Karrie deputy chairman Brian Ho mainly attributed the profit growth to increased demand for AI-related server products, especially ASIC-related server products which began mass production in the second half of the year. 

“The contribution of AI-related products to the company is still in its initial stages. As more AI servers, cabinets, and high-precision structural components gradually move from development and verification to mass production and delivery, I believe this business will continue to drive future growth significantly,” Ho noted.

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