Core Viewpoint - The report from West Cow Securities maintains a cautiously optimistic outlook on Business Travel Holdings (01982), highlighting a slight decline in revenue for the fiscal year 2024/25 but an improvement in gross margin [1] Group 1: Financial Performance - Revenue for the fiscal year 2024/25 is projected to decrease by 0.6% year-on-year, with gross margin slightly improving to 18.0% [1] - Net profit is expected to decline by 6.6% due to increased fixed asset disposal losses and rising personnel costs, despite the absence of negative impacts from impairment losses [1] - The company announced a dividend of HKD 0.015 per share for the second half of the year, with a payout ratio of approximately 75% for the fiscal year [1] Group 2: Product Sales - Sales volume for traditional knitted products and fully-fashioned products decreased to 22 million pieces and 4.7 million pieces, respectively, leading to a revenue decline of approximately 4.2% for knitted products [1] - The unusually warm winter climate contributed to a significant drop in sales, although growth in cashmere products somewhat alleviated the overall decline [1] - The overall order level remains stable, with expectations that total sales for the fiscal year will remain flat year-on-year [1] Group 3: Future Growth Potential - New cashmere yarn production capacity is expected to come online in 2026, with external sales of cashmere yarn achieving a 0.4% year-on-year growth, reaching approximately HKD 580 million [1] - The cashmere yarn factory in Hebei is operating at full capacity, with an anticipated annual capacity increase of 300 to 400 tons in 2026, expected to drive revenue growth for the company [1] Group 4: Business Outlook - The fabric business has shown significant improvement, with losses substantially reduced, and is expected to reach breakeven next year due to increased utilization and sales growth [2] - Despite rising inventory levels primarily due to increased raw material stock for cashmere yarn, the impact on the company is considered limited [2] - Macroeconomic uncertainties remain, particularly regarding international tariffs, which could adversely affect sales and profit margins, although the company believes it can reach reasonable solutions with partners in the long term [2]

（於開曼群島註冊成立的有限公司） （股份代號：1982） 截 至2025年3月31日 止 年 度 的 全 年 業 績 公 告 | 財 | 務 | 摘 | 要 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 截 | | 至3月31日 | 止 | 年 度 | | | | | | | | | | | | | | | | 2025年 | | 2024年 | | 變 動 | | | | | | | | | | | | 百 | 萬 | 港 元 | | 百 萬 港 | 元 | | | 收 | 益 | | | | | | | | | | | 4,352.1 | | 4,378.9 | | -0.6% | | 毛 | 利 | | | | | | | | | | | 781.8 | | | 774.2 | +1.0% | | 毛 | 利 | 率 | | | | | | | ...

Revenue and Profit Performance - Total revenue increased by 2.2% to HKD 2,786.2 million, driven by growth in cashmere yarn sales and fabric business[15] - Net profit reached a record high of HKD 312.8 million, up 2.4% year-on-year[15] - Operating profit grew by 5.0% to HKD 390.4 million[15] - Gross profit and gross margin improved compared to the same period last year[15] - Revenue increased by 2.2% to HKD 2,786.2 million for the six months ended September 30, 2024, compared to HKD 2,726.4 million in the same period last year, driven by higher sales of cashmere yarn and fabrics[33] - Gross profit rose to HKD 553.5 million with a gross margin of 19.9% for the six months ended September 30, 2024, up from HKD 498.0 million and 18.3% in the same period last year, due to improved performance in the fabric business and strong performance in the knitwear business[35] - Profit attributable to owners of the company increased from HKD 289.1 million in the six months ended September 30, 2023, to HKD 298.2 million in the six months ended September 30, 2024, driven by improved fabric and knitwear business performance[47] - Adjusted profit increased from HKD 289.1 million in the six months ended September 30, 2023, to HKD 298.5 million in the six months ended September 30, 2024, with the adjusted profit margin rising slightly from 10.6% to 10.7%[50] - Net profit attributable to owners of the company was HKD 327 million[121] - Gross profit increased to HKD 764 million, up from HKD 592 million in the previous period[121] Sales and Market Performance - Sales of men's and women's knitted products decreased by 5.0% to HKD 2,142.5 million, with a 5.3% drop in sales volume to 18.0 million pieces[14] - Sales of men's and women's knitwear products decreased by 5.3% to 18.0 million pieces for the six months ended September 30, 2024, compared to 19.0 million pieces in the same period last year, while the average selling price increased slightly by 0.1% to HKD 118.8 per piece[29] - Europe, Japan, and Mainland China remained the company's top three markets, contributing 22.7%, 21.3%, and 18.1% of total revenue, respectively, for the six months ended September 30, 2024[34] - Revenue from China's exports increased by 4.9%, while Vietnam's exports rose by 14.7%[10] Dividend and Shareholder Returns - The company declared an interim dividend of HKD 0.098 per share, with a payout ratio of 75%[15] - The company declared an interim dividend of 9.8 HK cents per share for the six months ended September 30, 2024, an increase from 9.5 HK cents in 2023[94] Operational and Strategic Initiatives - The company strategically expanded production capacity in central Vietnam to meet shifting market demands[11] - The company plans to expand its cashmere yarn business by relocating part of its operations to Vietnam, leveraging the growing demand for raw materials in the region[19] - The company has established partnerships for fabric printing and aims to become a leading raw material solutions provider in Vietnam[19] - The company remains committed to innovation, lean production, and digitalization to enhance product design and meet the diverse and rapidly changing preferences of end-market customers[23] - The company will continue to explore opportunities for business expansion and diversification while strengthening its core business to deliver greater returns to shareholders[23] Financial Position and Cash Flow - The company's cash flow remained strong, supported by prudent cash management[15] - Net cash generated from operating activities was HKD 106.5 million for the six months ended September 30, 2024, compared to HKD 383.6 million for the same period in 2023, impacted by increased trade receivables and prepayments[51][58] - Net cash used in investing activities was HKD 149.1 million for the six months ended September 30, 2024, primarily due to the purchase of property, plant, and equipment[59] - The company's gearing ratio increased from 8.9% as of March 31, 2024, to 14.3% as of September 30, 2024, reflecting higher debt levels relative to capital[57] - Cash and cash equivalents decreased by HKD 148.9 million to HKD 569.0 million as of September 30, 2024, compared to HKD 717.4 million on March 31, 2024[61] - The company's cash and cash equivalents are denominated in USD (60.2%), HKD (5.8%), RMB (30.5%), VND (3.2%), and other currencies (0.3%)[63] - Total bank borrowings and lease liabilities decreased by 77.0% in HKD, 22.2% in USD, and 0.8% in RMB as of September 30, 2024[65] - The weighted average effective interest rate on bank borrowings was 4.86% as of September 30, 2024[65] - Capital expenditures for the six months ended September 30, 2024, amounted to approximately HKD 316.8 million, primarily for machinery procurement and the construction of a new production base in Vietnam[66] - Capital commitments as of September 30, 2024, were approximately HKD 142.1 million, mainly for machinery procurement and the construction of a new production base in Vietnam[67] - The company utilized HKD 13.4 million of the IPO proceeds for the construction of a factory building and machinery procurement for the Dak Lak factory in Vietnam during the six months ended September 30, 2024[73] - The company had outstanding HKD interest rate swap contracts with a total notional principal of HKD 123.5 million as of September 30, 2024[78] - The company did not enter into any forward foreign exchange contracts to mitigate RMB-USD exchange rate risk during the six months ended September 30, 2024[79] - The company's liquidity risk management ensures sufficient cash and cash equivalents, as well as bank financing, to support its business and operational activities[82] - The company secured a three-year term loan facility of up to HK$150,000,000[178] - The company secured another three-year term loan facility of up to HK$130,000,000[179] - The company secured two term loan facilities totaling up to HK$300,000,000 for a period of three years[199] Expenses and Costs - Other income decreased by HKD 0.7 million to HKD 6.4 million for the six months ended September 30, 2024, mainly due to a reduction in government subsidies and other miscellaneous income, partially offset by an increase in rental income from investment properties[38] - Other income decreased from HKD 46.7 million in the six months ended September 30, 2023, to HKD 25.0 million in the six months ended September 30, 2024, primarily due to a smaller appreciation of the US dollar and reduced gains from the sale of property, plant, and equipment[39] - Sales and distribution expenses increased from HKD 17.8 million in the six months ended September 30, 2023, to HKD 21.0 million in the six months ended September 30, 2024, mainly due to higher transportation costs aligned with increased sales volume[40] - General and administrative expenses rose from HKD 162.2 million in the six months ended September 30, 2023, to HKD 173.5 million in the six months ended September 30, 2024, driven by increased employee costs due to business expansion[41] - Net finance costs increased slightly from HKD 23.1 million in the six months ended September 30, 2023, to HKD 25.2 million in the six months ended September 30, 2024, despite higher leverage, reflecting stable cash management[44] - The company's effective tax rate was 14.6% for the six months ended September 30, 2024, compared to 12.5% for the same period in 2023[47] - Total employee cost for the six months ended September 30, 2024, was HKD 544.0 million, with approximately 16,300 full-time employees across Mainland China, Vietnam, and Hong Kong[84] Corporate Governance and Shareholder Information - The company's largest shareholder, Mr. Wang Tingzhen, holds a 65.81% stake in the company through a trust[105] - The company's audit committee reviewed the interim financial report for the six months ended September 30, 2024, during a meeting held on November 22, 2024[98] - The company's directors and senior management receive salaries and performance-based bonuses, with compensation reviewed regularly by the remuneration committee[86] - The company provides training programs for new employees and ongoing development opportunities to enhance employee skills and knowledge[85] - The company's remuneration policy includes performance-based bonuses, insurance, medical benefits, and share options for employees[91] - The company adheres to high corporate governance standards, including maintaining a quality board, effective internal controls, and accountability to shareholders[95] - The company's controlling shareholder, Mr. Wong Ting Chung and/or his family members, will maintain at least 50% ownership of the company's issued share capital[177] - The company's controlling shareholder will maintain management control of the company[176] - The company's share option plan was adopted before the amended Listing Rules Chapter 17 (effective January 1, 2023) and may not fully comply with the amended rules[196] - The company will comply with the transitional arrangements for existing share schemes as of January 1, 2023, including but not limited to the scope of eligible participants and minimum vesting period requirements under the share option scheme[196] Share and Option Information - The company's total issued ordinary shares as of September 30, 2024, were 2,279,392,000[137] - The maximum number of shares that may be issued upon the exercise of all options under the share option plan shall not exceed 10% of the issued shares immediately after listing, i.e., a maximum of 200,000,000 shares[147] - The share option plan is valid for 10 years from April 12, 2016, and no additional options will be granted after this period[148] - Nanxuan Holdings Limited holds 1,500,000,000 shares, representing approximately 65.81% of the company's issued share capital[155] - The total number of issued ordinary shares as of September 30, 2024, is 2,279,392,000[161] - No share options were granted under the share option scheme during the six months ended September 30, 2024[190] - The weighted average exercise price of unexercised share options as of September 30, 2024 was HK$1.450[170] - The total number of share options available for grant under the share option scheme as of September 30, 2024 was 110,600,000, representing approximately 4.85% of the company's issued share capital[190] Related Party Transactions - The group's investment properties under irrevocable operating leases had future minimum lease payments totaling HKD 142,107 thousand as of September 30, 2024[126] - Lease payments to related party Hebei Yuteng Yangcheng Products Co., Ltd. amounted to HKD 4,323,000 for the six months ended September 30, 2024[129] - Lease payments to related party Huizhou Chuangyexing Property Management Co., Ltd. were HKD 21,000 for the six months ended September 30, 2023[130] - Prepayment for raw materials to Hebei Yuteng Cashmere Products Co., Ltd. increased to HK$305,288,000 as of September 30, 2024, from HK$124,564,000 as of March 31, 2024[140] - Trade payables to SML & FT (Vietnam) Limited increased to HK$5,616,000 as of September 30, 2024, from HK$2,975,000 as of March 31, 2024[140] - Other payables to Hebei Yuteng Cashmere Products Co., Ltd. increased to HK$195,652,000 as of September 30, 2024, from HK$83,641,000 as of March 31, 2024[140] - Lease liabilities to Han Yi Investment Co., Ltd. decreased to HK$8,347,000 as of September 30, 2024, from HK$8,568,000 as of March 31, 2024[140] - Lease payments to Tongxiang Yuteng Knitted Garments Co., Ltd. amounted to HK$412,000 for the six months ended September 30, 2024, compared to HK$446,000 for the same period in 2023[142] - Non-controlling shareholder loans of subsidiaries are unsecured, interest-free, denominated in RMB, and will mature in December 2026[143] Company Information - The company's website is http://www.namesonholdings.com[119] - The company's registered office is in the Cayman Islands[116] - The company's stock code is 1982[119] - The company's auditor is PricewaterhouseCoopers[119]

Investment Rating - The report maintains a "BUY" rating for Nameson Holdings with a target price of HKD 1.01, indicating an upside potential of 24.7% from the current price of HKD 0.81 [1]. Core Insights - Nameson's 1HFY25 results were largely in line with expectations, with sales and adjusted net profit growing by 2.2% and 3.3% year-on-year, respectively, reaching HKD 2,726 million and HKD 299 million [1][6]. - The blended gross margin improved by 1.6 percentage points year-on-year to 19.9%, attributed to lower raw material prices and enhanced operational efficiency at the Vietnam plant [1][6]. - The company experienced a normalization in order volumes for whole garments, which temporarily affected total sales volume, while traditional knitwear and cashmere products provided volume support [1][6]. - Sales volume for Nameson reached 18 million pieces in 1HFY25, a decrease of 5.7% year-on-year, with cashmere sales volume increasing significantly by 74% year-on-year to 1.6 million pieces [1][6]. Summary by Sections Financial Performance - Nameson's 1HFY25 average selling price (ASP) remained stable year-on-year at approximately US$18, with cashmere sales enjoying a higher ASP of around US$40, while traditional knitwear maintained an ASP of US$13-14 [1][6]. - The company expects FY25E sales to decline by approximately 1% year-on-year, primarily due to lower whole garment sales volume, offset by a stable blended ASP due to a better product mix [1][6]. Market Dynamics - Sales in Europe and Southeast Asia outperformed, growing by 23.1% and 37.7% year-on-year, respectively, driven by favorable weather and clients' overseas expansion [1][6]. - Conversely, sales in Japan and China faced challenges, declining by 23% and 3.9% year-on-year, respectively, due to late winter and macroeconomic headwinds [1][6]. Operational Insights - Nameson manufactured 70% of its total sweaters in Vietnam during 1HFY25, with plans to continue expanding capacity in Central Vietnam [3]. - The company has ramped up its cashmere yarn production, achieving over 550 tons in 1HFY25, with a significant increase in revenue from its branded cashmere yarn, M.oro, which rose by 26.8% to approximately HKD 419 million [4][5]. Valuation and Outlook - Nameson is trading at an undemanding FY25E/26E PE of 4.4x/4.0x, which is approximately a 46% discount to peers' average [7]. - The company maintains a healthy balance sheet with a low net gearing ratio of 14.3% in 1HFY25, allowing for a sustainable payout ratio of around 75% [8].

Investment Rating - The report does not provide a specific investment rating for the company [2]. Core Insights - The company, Nanxun Holdings (01982.HK), achieved a total revenue of HK$ 438.79 million for the first half of the fiscal year ending September 2024, reflecting a year-on-year growth of 2.2% and an increase in gross margin to 19.9% [2][6]. - The company declared an interim dividend of HK$ 0.098 per share [2]. - Sales of knitted products experienced a slight decline, with a 5.0% decrease in sales volume compared to the same period last year, despite a positive impact from an increase in average selling prices [2]. - The cashmere yarn business showed significant growth, with a year-on-year increase of 26.8% to HK$ 420 million, driven by both domestic and export demand [2]. - The company is focusing on optimizing operational efficiency, benefiting from improved operational efficiency in existing factories in Vietnam and rental income from the central factory [2]. Summary by Sections Financial Performance - Total revenue for the fiscal year 2023/24 is projected at HK$ 4,378.9 million, with a slight decline expected in sales volume for 2024/25 [2][9]. - The gross profit for the fiscal year 2023/24 is expected to be HK$ 774.2 million, with a gross margin of 17.7% [9]. - Net profit for the fiscal year 2023/24 is projected at HK$ 380.7 million, reflecting a year-on-year growth of 140.5% [9]. Market Position - The company has a market capitalization of HK$ 2.1 billion and a price-to-earnings ratio of 5.5x [6]. - The company is positioned within a competitive landscape, with peers such as Shenzhou International and others showing varying financial metrics [6]. Operational Insights - The company is experiencing challenges in the fabric business, with ongoing concerns about the absorption of new production capacity [2]. - The company is not planning to reduce its dividend payout ratio despite the pressures from new factory setups in Vietnam [2].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for Nameson (01982.HK) [3]. Core Insights - Nameson reported a 2.2% year-over-year increase in revenue for the first half of FY 2024/25, achieving a gross margin of 19.9% [3]. - The company announced a dividend of HKD 0.098 per share [4]. - There was a 5.0% year-over-year decline in revenue from knitwear products, attributed to a decrease in sales volume despite a slight rebound in average selling price (ASP) [4]. - The cashmere yarn business showed strong performance with a 26.8% year-over-year growth, reaching HKD 418.5 million [4]. - The company provided conservative guidance indicating a potential slight drop in sales volume for FY 2024/25 [4]. Financial Performance - Revenue for FY 2022/23 was HKD 4,602.3 million, with a year-over-year growth of 13.9% [9]. - The gross profit for FY 2022/23 was HKD 745.5 million, with a gross margin of 16.2% [9]. - Net profit for FY 2022/23 was HKD 158.3 million, reflecting a year-over-year decline of 42.6% [9]. - The company reported a return on equity (ROE) of 6.2% for FY 2022/23, which is expected to improve to 15.0% in FY 2023/24 [12]. Market Position and Competitors - Nameson has a market capitalization of HKD 2.1 billion and a P/E ratio of 5.5 [7]. - The average P/E ratio among peers is 10.1, indicating that Nameson is trading at a discount compared to its competitors [7]. - The company has gained two new customers in the EU and Canada, which may contribute positively to future revenue [4]. Operational Efficiency - The report highlights improving operating efficiency in existing factories in Vietnam and rental income from a factory in China as key factors for potential margin improvement [4]. - The company is facing short-term headwinds due to new factories for knitwear and fabric products [4].

Key Points Industry and Company * **Industry**: Apparel manufacturing and retail * **Company**: Danley Group Core Views and Arguments * **Overall Performance**: The company experienced a slight recovery in 2025, but the first half of the year was affected by geopolitical tensions and trade relations, leading to a slower economic recovery than expected. * **Revenue Growth**: Revenue increased by 2.2% to HKD 2.79 billion in the first half of 2025, driven by increased sales of yarn and fabric. * **Profitability**: Gross profit increased by 11.1% to HKD 550 million, with a gross margin of 19.5%. Net profit increased by 2.4% to HKD 313.1 million. * **Strategic Investments**: The company has expanded its production capacity in Vietnam, with 70% of production now taking place there. This strategic investment is expected to benefit the company's long-term growth. * **Product Mix**: The company has adjusted its product mix to include more fuel garments, which has helped maintain stable average selling prices. Other Important Points * **Geographic Distribution**: The company's sales are relatively分散, reducing its exposure to geopolitical risks. * **Customer Base**: The company's customer base is stable and consists of mid-to-high-end brands. * **Cash Flow**: The company's cash flow from operations decreased to HKD 170 million in the first half of 2025 due to increased prepayments and capital expenditures. * **Capital Expenditure**: The company's capital expenditure is expected to remain at the same level as the previous year. * **Market Outlook**: The company expects the terminal consumption atmosphere to remain uncertain in the second half of the year. It expects the core sweater business to remain stable or slightly decline in the second half of the year. Additional Information * The company has established a woolen yarn production base in Vietnam to meet customer demand. * The company is actively developing new international brand customers in Europe and North America. * The company is committed to optimizing its product mix and improving efficiency to achieve reasonable profitability. * The company has a strong management team with a proven ability to adapt to market changes.

Financial Data and Key Metrics Changes - The group's revenue increased by 2.2% to HKD 2.79 billion in the first half of 2025, with gross profit rising by 11.1% to HKD 550 million, leading to a net profit growth of 2.4% to HKD 298 million, marking a historical high for the half-year period [2][3][4] - The gross margin improved by 1.6 percentage points to nearly 20%, primarily due to better performance in fabric sales and improved efficiency in the core product business [2][4] Business Line Data and Key Metrics Changes - The sales volume of the core sweater business decreased slightly by 5.2% to 1.8 million pieces, attributed to uncertainties in consumer recovery and a reduction in quick orders [8][12] - The cash flow from operating activities decreased to approximately HKD 107 million due to increased prepayments based on business needs [6] Market Data and Key Metrics Changes - Sales in Europe, Japan, and China accounted for 23%, 21%, and 18% of total revenue, respectively, indicating a diversified market presence that mitigates geopolitical risks [7][12] - The production in Vietnam increased to 70%, while production in China accounted for 30%, reflecting a strategic shift towards Southeast Asia [10][12] Company Strategy and Development Direction - The company is focusing on optimizing its product mix and pricing strategies to align with market demands, particularly in the sweater segment [7][8] - Plans to establish a cashmere yarn production base in Vietnam are underway to meet growing demand and enhance profitability [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the second half of 2025, anticipating a slight decline in sweater orders but remaining confident in long-term growth prospects [12][22] - The company is actively developing new international brand clients, particularly in Canada and Europe, to diversify its customer base [9][24] Other Important Information - The company maintained a high dividend payout ratio of 74.8%, with a record interim dividend of HKD 0.098 per share [2][4] - Trade receivables increased by approximately 145%, which management clarified is a normal seasonal fluctuation rather than a sign of collection issues [5][6] Q&A Session Summary Question: What is the structure of raw material and labor costs? - The CFO provided insights on cost structures, indicating that the company maintains a balanced approach to managing costs [13] Question: What is the forecast for orders in the second half of the year? - The company expects a slight decline in sweater orders, estimated to be less than 5% [14] Question: How will increased tariffs from the US affect the group? - The company plans to pass on additional costs to customers if tariffs are imposed, but its diversified market presence should mitigate significant impacts [14][15] Question: Will the dividend payout ratio remain stable? - The company aims to maintain the dividend payout ratio at last year's level, despite increased capital expenditures [15] Question: What are the reasons for the decline in the Japanese market? - Factors include delayed orders and warmer weather affecting demand for products [16][17] Question: How does the company view the economic recovery in China? - Management remains confident in the long-term potential of the Chinese market, despite recent fluctuations in orders [22][24]

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 2,786.2 million, representing a 2.2% increase from HKD 2,726.4 million in the same period of 2023[4] - Gross profit increased by 11.1% to HKD 553.5 million, up from HKD 498.0 million year-over-year[4] - Net profit for the period was HKD 312.8 million, a 2.4% increase compared to HKD 305.6 million in the previous year[4] - Adjusted net profit was HKD 298.5 million, reflecting a 3.3% increase from HKD 289.1 million in the same period of 2023[4] - Basic and diluted earnings per share rose to HKD 13.1 cents, up 3.1% from HKD 12.7 cents[4] - Operating profit was HKD 390.4 million, compared to HKD 371.7 million in the same period last year[6] - The company reported a gross margin of 19.9%, an increase of 1.6 percentage points from 18.3% in the previous year[4] - Total revenue increased by 2.2% to HKD 2,786.2 million, driven by growth in cashmere yarn sales and fabric business, with improved gross profit and gross profit margin compared to the same period last year[66] - Operating profit rose by 5.0% to HKD 390.4 million, while net profit reached a historic high of HKD 312.8 million, reflecting a 2.4% increase year-on-year[67] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 4,831.9 million, compared to HKD 4,448.1 million as of March 31, 2024[17] - Total equity increased to HKD 2,796,647 thousand as of September 30, 2024, up from HKD 2,598,959 thousand as of March 31, 2024, representing a growth of 7.6%[19] - Total liabilities rose to HKD 2,035,231 thousand, compared to HKD 1,849,144 thousand in the previous period, indicating an increase of 10.1%[19] - Cash and cash equivalents decreased to HKD 569.0 million from HKD 717.4 million[17] - Trade receivables as of September 30, 2024, amounted to HKD 409,234,000, compared to HKD 167,149,000 as of March 31, 2024, indicating a significant increase[49] - The total bank borrowings as of September 30, 2024, were HKD 788,086,000, a decrease from HKD 807,940,000 as of March 31, 2024[53] - The group's leverage ratio increased from 8.9% as of March 31, 2024, to 14.3% as of September 30, 2024, calculated as net debt divided by total equity[102] Revenue Breakdown - Major customers accounted for approximately 69.1% of total revenue for the six months ended September 30, 2024, down from 72.4% in 2023[35] - Revenue from Japan decreased to HKD 592,102 thousand for the six months ended September 30, 2024, compared to HKD 764,182 thousand in 2023, reflecting a decline of about 22.5%[33] - Revenue from Europe increased significantly to HKD 631,710 thousand for the six months ended September 30, 2024, up from HKD 511,823 thousand in 2023, marking a growth of approximately 23.4%[33] - Revenue from North America increased slightly to HKD 439,339 thousand for the six months ended September 30, 2024, compared to HKD 423,311 thousand in 2023, reflecting a growth of about 3.8%[33] - Revenue from Mainland China was HKD 503,805 thousand for the six months ended September 30, 2024, a decrease from HKD 524,447 thousand in 2023, representing a decline of approximately 3.0%[33] Expenses and Costs - Total cost of sales, selling and distribution expenses, and general and administrative expenses amounted to HKD 2,427,158,000 in 2024, compared to HKD 2,408,435,000 in 2023, an increase of approximately 0.8%[39] - Advertising and promotional expenses decreased to HKD 3,233,000 in 2024 from HKD 4,579,000 in 2023, a reduction of approximately 29.4%[39] - Employee benefits expenses, including director remuneration, increased to HKD 544,028,000 in 2024 from HKD 534,218,000 in 2023, reflecting a growth of about 1.5%[39] - Selling and distribution expenses increased by HKD 3.2 million to HKD 21.0 million, attributed to rising transportation costs consistent with overall sales volume increases[85] - General and administrative expenses rose by HKD 11.3 million to HKD 173.5 million, primarily due to increased employee costs from business expansion[86] Taxation - The estimated tax expense for Hong Kong profits tax was HKD 15,409,000 in 2024, up from HKD 9,653,000 in 2023, a significant increase of approximately 59.1%[43] - The total income tax expense for the six months ended September 30, 2024, was HKD 53,402,000, compared to HKD 43,804,000 in 2023, reflecting an increase of approximately 21.9%[43] - The effective tax rate for the group was 14.6% for the six months ended September 30, 2024, compared to 12.5% for the same period in 2023[92] Market and Operational Insights - The company continues to focus on expanding its market presence and enhancing product offerings, although specific new product details were not disclosed in the financial summary[19] - The company reported a cautious consumer spending pattern due to ongoing geopolitical tensions and inflationary pressures as of September 30, 2024[60] - The company demonstrated strong resilience despite facing significant challenges over the past few years, adapting to market dynamics effectively[62] - The group aims to enhance product design through functional and material development to meet rapidly changing customer preferences[74] - The company plans to continue seeking innovations and breakthroughs in lean production and digitalization under uncertain geopolitical conditions[74] Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.098 per share, with a payout ratio of 75%, in appreciation of shareholder support[67] - The interim dividend per share increased to HKD 0.098 in 2024 from HKD 0.095 in 2023, marking a rise of approximately 3.2%[48] Corporate Governance - The company has adhered to the corporate governance code and has maintained high standards of corporate governance as of September 30, 2024[123] - The audit committee consists of three independent non-executive directors and is responsible for overseeing the financial reporting process and internal controls[127]

Investment Rating - The report assigns a rating of NR (Not Rated) for Nameson (01982.HK) [2][4]. Core Insights - The company experienced a revenue decline of 4.9% year-on-year for the fiscal year 2023/24, totaling HKD 4,378.9 million. However, net profit increased by 140.5% year-on-year to HKD 380.7 million due to a rise in gross margin and a reduction in impairment from the Myanmar factory [9]. - The company is planning significant capital investments, approximately HKD 400 million, to expand its fabric production capacity by establishing a new factory expected to be completed by 2026, which will add 30 million pounds of capacity [2][4]. - The average selling price (ASP) of knitted products decreased significantly from HKD 125.6 to HKD 109.2 per unit, primarily due to a drop in ASP for cashmere products and raw material prices [2][4]. Financial Summary - Revenue for the fiscal years is as follows: HKD 3,848.6 million (2020/21), HKD 4,040.5 million (2021/22), HKD 4,602.3 million (2022/23), and HKD 4,378.9 million (2023/24) [6][9]. - Gross profit figures are HKD 701.4 million (2020/21), HKD 706.1 million (2021/22), HKD 745.5 million (2022/23), and HKD 774.2 million (2023/24) [6]. - The net profit for the fiscal years is as follows: HKD 298.4 million (2020/21), HKD 275.6 million (2021/22), HKD 158.3 million (2022/23), and HKD 380.7 million (2023/24) [6][9]. Market Position - Nameson has a market capitalization of HKD 1,664 million, with a P/E ratio of 4.6 and a P/B ratio of 0.7, indicating a relatively low valuation compared to peers [4]. - The company’s gross margin stands at 17.7%, and return on equity (ROE) is at 15.5%, reflecting a solid profitability position [4]. Expansion Plans - The company is actively pursuing expansion plans, including investments in personal protective equipment and capacity expansion in Vietnam, with projected expenditures of HKD 150 million and HKD 100 million for the fiscal years 2024/25 and 2025/26, respectively [2][4]. - The fabric business is expected to drive long-term growth, although it currently faces challenges with low utilization rates [2].