Man Wah Holdings (1999) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 was HK$8,305.4 million, down 7.1% year-over-year, mainly due to weak domestic demand in China and a challenging PRC market, while export markets, especially North America and Europe, showed growth.

• Profit attributable to owners rose 0.3% year-over-year to HK$1,138.9 million, with gross profit margin up to 39.5% and net profit margin up to 13.7%.

• Interim dividend of HK15 cents per share declared, maintaining a payout ratio of 51.1%.

• Gross profit margin increased to 39.5% from 39.1%, driven by cost control and efficiency improvements.

• Overseas markets, especially North America and Europe, showed strong growth, offsetting some domestic weakness.

Financial highlights

• Revenue: HK$8,305.4 million (down 7.1% year-over-year).

• Gross profit: HK$3,280.6 million (down from HK$3,491.9 million year-over-year).

• Net profit attributable to owners: HK$1,138.9 million (up 0.3% year-over-year).

• Basic and diluted EPS: 29.37 HK cents (up from 29.05 HK cents).

• Cash and bank balances: HK$4,283.9 million as of 30 September 2024.

Outlook and guidance

• Overseas production capacity is stable, supporting further export growth, especially in North America and Europe.

• Domestic market expected to recover gradually with policy support and thematic marketing campaigns targeting replacement demand.

• Continued focus on R&D, product innovation, and expanding global market share.