One of the world’s largest manufacturers of power supply units has identified an investment opportunity in Australia through a $1.5 million investment made in eCommerce company Harris Technology (ASX: HT8) at a substantial premium to their share price.
The investment by FSP Technology was completed through a private Placement at an issue price of 2 cents per share – double the 1 cent share price that HT8 shares closed at on Friday.
Based in Taiwan, FSP Technology Inc is one of the world’s largest power supply manufacturers. This move signals strong confidence in Harris Technology’s expanding refurbished tech division. It also injects valuable capital into the business that can quickly become the top retailer of refurbished tech products in Australia’s highly fragmented market.
“We are pleased to have the support of a major global IT industry participant and welcome FSP as a VIP shareholder,” said Harris Technology CEO, Garrison Huang.
“This capital raise enhances our financial flexibility, enabling us to scale operations – particularly in the refurbished tech sector – while executing our product margin strategy and driving long-term shareholder value.”
FSP Technology: A global leader with strategic ambitions
FSP Technology Inc (TWSE: 3015) is listed on the Taiwan Stock Exchange with a market capitalisation exceeding NT$12 billion (A$580 million). As a leading global power supply manufacturer, FSP produces a vast range of products for sectors including edge computing, medical technology, smart-energy solutions, gaming PCs, and PD chargers.
While the operational nature of FSP’s investment has not been disclosed, many products that FSP manufacturers are either sold by Harris Technology already, or can be used when refurbishing tech products such as laptops, PCs, servers, routers.
Prior to joining Harris Technology, Huang was the man who first introduced FSP products to Australia when he was at the helm of Anyware Corporation – an IT wholesaler business he founded in 1997 and was acquired by Harris Technology.
FSP’s investment in Harris Technology presents a strategic opportunity to expand its presence in Australia, leveraging HT8’s well-established eCommerce infrastructure as one of the biggest sellers of tech products in Australia across major online marketplaces, including Amazon, eBay, and more.
Capitalising on the growing Refurbished tech market
Harris Technology’s refurbished tech business has experienced rapid growth since its inception in 2023. The Company reported a consistent increase in product margins, with gross profit margins reaching 44% in Q1 FY25.
These Refurbished products have played a notable role in lifting Harris Technology’s overall margins which reached 34.9% across the Half Year ended 31 December 2024, comfortably higher than the 27.1% reported for the previous corresponding period.
Capitalising on this demand and strong performance, Harris Technology has been gradually scaling back its traditional product range of new IT products. Sales of these products have been adversely affected by the retail landscape in Australia where discretionary spending has plummeted since 2022 in response to macroeconomic pressure. Instead, consumers are seeking cost-effective tech products – a demand gap that Harris Technology has handsomely stepped into.
HT8’s refurbished tech division currently sells laptops, mini PCs, monitors, networking products, and refurbished servers. With the division having witnessed sustained demand and taken over a large portion of Harris Technology’s warehousing facility in Victoria, the Company sees substantial growth potential, particularly in refurbished smartphones and tablets.
The Australian refurbished tech market remains highly fragmented with most refurbishers operating as small businesses, many of which do not have the marketplace accreditation that Harris Technology possesses, giving customers greater confidence in the refurbished products sold by Harris Technology.
Outlined in their presentation to investors, increased capital would accelerate Harris Technology’s growth in the market and set a path to consolidate the market by streamlining operations through their facility and secure additional product supply sources.
A transformational partnership for future growth
Securing this $1.5m investment from FSP aligns with Harris Technology’s broader turnaround strategy. Following a peak share price of 21.5 cents during the pandemic-driven tech boom, HT8’s stock has since faced pressure due to excess inventory and shifting market dynamics.
With FSP’s backing, Harris Technology is poised to strengthen its market leadership, drive higher profitability, and create further investment opportunities in Australia’s evolving tech retail landscape. The collaboration also enhances FSP’s ability to expand its footprint in Australia, bringing innovative power supply solutions to a broader audience through HT8’s established retail channels and supply chain.
For the Half Year ended 31 December 2024, Harris Technology reported sales revenue of $7.0 million. Although that represented a 20.9% decrease on the previous corresponding period, the Company’s gross profit of $2.6 million was up 10.7% on the same comparative period driven by growth of its Refurbished division.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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