1) 北美市场：FY26H1 收入21.61 亿港元，同比微增0.3%，在国际贸易壁垒升温背景下展现出强劲韧 性。 2) 欧洲及其他市场：FY26H1 收入7.65 亿港元，同比增长4.3%。 3) Home 集团业务：FY26H1 收入3.80 亿港元，同比增长2.2%，主要受益于欧洲市场需求增加。 盈利能力受益于原材料价格下降有所提升。集团整体毛利率提升至40.4%，同比+0.9pcts；主要受益于 真皮（-10.4%）、化学品（-9.8%）、钢材（-6.8%）等主要原材料平均单位成本下降。但期内美国开始 对越南征收关税，导致公司出口至美国的关税费用从去年同期的665 万港元增至7,883 万港元，收入占 比从0.1%增长至1.0%。 机构：中泰证券 研究员：张潇/邹文婕 事件：公司发布FY2026H1 业绩，收入降幅收窄。公司FY26H1（截至2025 年9 月30 日止六个月）实现 营业收入80.45 亿港元，同比-3.1%；受益于成本控制及经营效率提升，毛利率同比提升0.9 个百分点至 40.4%，实现归母净利润11.46 亿港元，同比+0.6%。非经常性损益方面，期内其他亏损净额为3,348 万 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][11] Core Views - The company has shown resilience in its external sales, with a notable recovery in overseas markets, while domestic sales are expected to stabilize [8] - The company's revenue for FY26H1 was HKD 8.045 billion, a year-on-year decrease of 3.1%, but the decline has narrowed significantly compared to previous periods [7] - The gross profit margin improved by 0.9 percentage points to 40.4%, benefiting from cost control and operational efficiency [7][8] Revenue and Profitability - The company's revenue forecast for the upcoming years is as follows: - 2024A: HKD 18.411 billion - 2025A: HKD 16.903 billion - 2026E: HKD 16.953 billion - 2027E: HKD 17.631 billion - 2028E: HKD 18.513 billion - The year-on-year growth rates for revenue are projected to be -8% for 2025A, 0% for 2026E, 4% for 2027E, and 5% for 2028E [2] - The net profit attributable to the parent company is forecasted as follows: - 2024A: HKD 2.302 billion - 2025A: HKD 2.063 billion - 2026E: HKD 2.193 billion - 2027E: HKD 2.321 billion - 2028E: HKD 2.433 billion - The year-on-year growth rates for net profit are projected to be -10% for 2025A, 6% for 2026E, 6% for 2027E, and 5% for 2028E [2] Market Performance - Domestic sales in the Chinese market for FY26H1 were HKD 4.203 billion, a year-on-year decrease of 6.5%, but the decline has significantly narrowed compared to FY25H2 [7] - Online sales showed strong performance with a year-on-year increase of 13.6%, while offline sales decreased by 12.3% [7] - The North American market revenue for FY26H1 was HKD 2.161 billion, a slight increase of 0.3%, demonstrating strong resilience amid rising international trade barriers [5] - Revenue from Europe and other markets for FY26H1 was HKD 0.765 billion, a year-on-year increase of 4.3% [5] Cost and Margin Analysis - The overall gross profit margin increased to 40.4%, benefiting from a decrease in average unit costs of key raw materials such as leather, chemicals, and steel [8] - However, the company faced increased tariff costs for exports to the United States, which rose from HKD 6.65 million to HKD 78.83 million year-on-year [8]

Core Viewpoint - The report from Zhongtai Securities maintains a "Buy" rating for Minhua Holdings, indicating that domestic sales are expected to gradually recover as channel reforms progress, despite a slight decline in revenue for FY26H1 [1] Performance Overview - For FY26H1, the company reported revenue of HKD 8.045 billion, a year-on-year decrease of 3.1%. However, due to effective cost control, the gross margin improved by 0.9 percentage points to 40.4%, resulting in a net profit attributable to shareholders of HKD 1.146 billion, an increase of 0.6% [1] - Non-recurring losses for the period amounted to HKD 33.48 million, significantly reduced from HKD 109 million in the same period last year, primarily due to fair value losses on investment properties [1] Domestic Sales Performance - Domestic revenue (excluding real estate and smart components) reached HKD 4.203 billion, down 6.5% year-on-year, but the decline was significantly narrowed compared to FY25H2 [2] - Online sales showed strong performance with revenue of HKD 1.144 billion, up 13.6% year-on-year, while offline sales decreased by 12.3% to HKD 3.059 billion. The total number of stores decreased by 327 to 7,040 [2] - Sofa sales remained stable with revenue of HKD 3.084 billion, a slight decline of 6.1%, while mattress sales faced pressure with revenue of HKD 1.119 billion, down 7.4% due to consumer downgrade in the Chinese market [2] Export Market Resilience - The North American market showed resilience with FY26H1 revenue of HKD 2.161 billion, a slight increase of 0.3% despite rising international trade barriers [3] - Revenue from Europe and other markets reached HKD 0.765 billion, a year-on-year increase of 4.3% [4] - Home group business revenue was HKD 0.380 billion, up 2.2%, mainly benefiting from increased demand in the European market [5] Profitability Improvement - The overall gross margin improved to 40.4%, up 0.9 percentage points, driven by a decrease in average unit costs of key raw materials such as leather (-10.4%), chemicals (-9.8%), and steel (-6.8%) [6] - However, the company faced increased tariff costs for exports to the U.S., rising from HKD 6.65 million to HKD 78.83 million, with the revenue share increasing from 0.1% to 1.0% [6] Investment Recommendation - As a leader in functional sofas, the company is expected to benefit from the trend of home automation, with the penetration rate of functional sofas likely to continue increasing. Although domestic sales are under pressure, recovery is anticipated as channel reforms progress [7] - The profit forecast for FY26-FY28 has been slightly adjusted, with expected net profits of HKD 2.19 billion, HKD 2.32 billion, and HKD 2.43 billion respectively, corresponding to P/E ratios of 7.8, 7.4, and 7.0 [7]

Core Viewpoint - The report from Zhongtai Securities maintains a "Buy" rating for Minhua Holdings (01999), indicating that domestic sales are expected to gradually recover as channel reforms progress, despite a slight decline in revenue for FY26H1 [1][2]. Performance Overview - For FY26H1, the company reported revenue of HKD 8.045 billion, a year-on-year decrease of 3.1%. However, due to effective cost control and improved operational efficiency, the gross margin increased by 0.9 percentage points to 40.4%, resulting in a net profit attributable to shareholders of HKD 1.146 billion, up 0.6% year-on-year [2]. - The company experienced a significant reduction in losses from non-recurring items, with other losses netting HKD 33.48 million, a substantial decrease from HKD 109 million in the same period last year [2]. Domestic Sales Performance - Domestic revenue (excluding real estate and smart components) for FY26H1 was HKD 4.203 billion, down 6.5% year-on-year, but the decline was significantly narrowed compared to FY25H2 [3]. - Online sales showed strong performance, with revenue of HKD 1.144 billion, an increase of 13.6% year-on-year, while offline sales decreased by 12.3% to HKD 3.059 billion. The total number of stores decreased by 327 to 7,040 by the end of FY26H1 [3]. - Sofa sales remained stable, with revenue of HKD 3.084 billion, a slight decline of 6.1%, while mattress sales faced pressure, generating HKD 1.119 billion, down 7.4% due to consumer downgrading in the Chinese market [3]. Export Market Resilience - The North American market showed resilience with FY26H1 revenue of HKD 2.161 billion, a slight increase of 0.3% despite rising international trade barriers [4]. - Revenue from Europe and other markets reached HKD 0.765 billion, up 4.3% year-on-year [5]. - Home group business revenue was HKD 0.380 billion, a 2.2% increase, primarily driven by increased demand in the European market [6]. Profitability Improvement - The overall gross margin improved to 40.4%, up 0.9 percentage points, benefiting from a decrease in average unit costs of key raw materials such as leather (-10.4%), chemicals (-9.8%), and steel (-6.8%) [7]. - However, the company faced increased tariff costs for exports to the U.S., rising from HKD 6.65 million to HKD 78.83 million year-on-year, with the revenue share increasing from 0.1% to 1.0% [7]. Investment Recommendation - As a leading player in functional sofas, the company is expected to benefit from the trend of home automation, with the penetration rate of functional sofas likely to continue increasing. Although domestic sales are under pressure, recovery is anticipated as channel reforms progress [8]. - The profit forecast for FY26-FY28 has been slightly adjusted, with expected net profits of HKD 2.19 billion, HKD 2.32 billion, and HKD 2.43 billion respectively, corresponding to P/E ratios of 7.8, 7.4, and 7.0 [8].

Core Viewpoint - CICC maintains the earnings forecast for Minhua Holdings (01999) at HKD 21.24 billion for FY2026 and HKD 22.48 billion for FY2027, with the current stock price corresponding to a P/E ratio of 9x for both fiscal years, indicating a 27% upside potential to the target price of HKD 6.5, which corresponds to a P/E of 12x for FY2026 and 11x for FY2027 [1]. Group 1: Financial Performance - For 1HFY26, the company achieved a revenue of HKD 80.45 billion, a decrease of 3.1% year-on-year, and a net profit of HKD 11.46 billion, an increase of 0.6% year-on-year, aligning with CICC's expectations [2]. - The company plans to distribute a dividend of HKD 0.15 per share, resulting in a payout ratio of 50.8% [2]. Group 2: Sales Performance - Domestic sales revenue decreased by 6% to HKD 46.75 billion, while online sales showed a growth of 13.6% to HKD 11.44 billion, indicating a shift towards online channels [3]. - In the overseas market, revenue from North America, Europe, and other regions increased by 0.3%, 4.3%, and 2.2% respectively, demonstrating stable growth despite tariff disruptions [3]. Group 3: Profitability Metrics - The gross margin improved by 0.9 percentage points to 40.4%, with gross margins in China, overseas, and other regions increasing by 0.8, 1.1, and 0.3 percentage points respectively [4]. - The net profit margin also increased by 0.5 percentage points to 14.2%, driven by improved operational efficiency and cost control [4]. Group 4: Strategic Initiatives - The company reduced its number of stores by 327 to 7,040, with a corresponding revenue decline of 12.3% in physical stores, but anticipates improved operational efficiency from ongoing store optimization [5]. - The company is focusing on multi-channel strategies domestically and enhancing brand building while expanding internationally through global capacity collaboration and participation in international exhibitions [5].

Core Viewpoint - The company's performance in 1HFY26 met expectations, with a slight decline in revenue but a modest increase in net profit, indicating stable operational efficiency and strategic positioning in both domestic and international markets [1][2]. Group 1: Financial Performance - In 1HFY26, the company achieved revenue of HKD 8.045 billion, a year-on-year decrease of 3.1%, and a net profit of HKD 1.146 billion, a year-on-year increase of 0.6% [1]. - The company plans to distribute a dividend of HKD 0.15 per share, resulting in a payout ratio of 50.8% [1]. Group 2: Sales Trends - Domestic sales showed a decline of 6% to HKD 4.675 billion, while online sales grew by 13.6% to HKD 1.144 billion, indicating a shift in consumer purchasing behavior [2]. - International sales in North America and Europe increased by 0.3% and 4.3%, respectively, demonstrating resilience in overseas markets despite tariff disruptions [2]. Group 3: Profitability and Efficiency - The gross margin improved by 0.9 percentage points to 40.4%, with net margin increasing by 0.5 percentage points to 14.2%, reflecting enhanced operational efficiency and cost control [2]. - The company reduced its number of stores by 327 to 7,040, resulting in a 12.3% decrease in store revenue, but anticipates improved efficiency from ongoing store optimization [2]. Group 4: Strategic Outlook - The company is focusing on multi-channel strategies in the domestic market and enhancing brand presence while expanding internationally through global capacity coordination and participation in international exhibitions [2]. - The earnings forecast for FY2026 and FY2027 remains unchanged at HKD 2.124 billion and HKD 2.248 billion, respectively, with a target price of HKD 6.5, indicating a potential upside of 27% from the current stock price [3].

Core Viewpoint - The company reported a slight decline in revenue but a modest increase in net profit, indicating resilience in its operations despite challenging market conditions [1][2] Financial Performance - The company’s FY26H1 revenue was HKD 8.04 billion, a year-on-year decrease of 3.1% - Net profit attributable to shareholders was HKD 1.146 billion, reflecting a year-on-year increase of 0.6% - Gross margin stood at 40.4%, up by 0.9 percentage points year-on-year - Net profit margin was 14.2%, an increase of 0.5 percentage points year-on-year [1] Domestic Sales - Domestic sales revenue reached HKD 4.67 billion, down 6.0% year-on-year, but the decline was narrowing - Gross margin for domestic sales improved to 41.0%, up by 0.8 percentage points year-on-year, benefiting from lower raw material prices - E-commerce sales grew by 13.6% to HKD 1.14 billion, while offline sales fell by 12.3% to HKD 3.059 billion - The company reduced its store count to 7,040, a net decrease of 327 stores [1] Product Performance - Sofa sales slightly outperformed bed products, with domestic sofa revenue at HKD 3.084 billion (down 6.1%) and bed revenue at HKD 1.119 billion (down 7.4%) - Sofa sales volume increased by 0.1%, while prices decreased by 6.2%, primarily due to a higher proportion of online sales [1] International Sales - Revenue from North America and Europe grew to HKD 2.16 billion and HKD 0.765 billion, respectively, with year-on-year increases of 0.3% and 4.3% - The gross margin for international sales was 39.3%, up by 1.1 percentage points year-on-year, driven by lower raw material costs and improved operational efficiency [1] Expenses - Sales expense ratio increased to 19.13%, up by 0.9 percentage points year-on-year, primarily due to tariffs imposed by the U.S. on Vietnam and increased e-commerce promotion costs - Tariff expenses rose from HKD 6.65 million to HKD 78.83 million, accounting for a year-on-year increase of 0.9 percentage points in revenue proportion [2] Investment Outlook - The domestic penetration rate for functional sofas is expected to continue rising, projected at 12.2% by 2024, an increase of 2.5 percentage points year-on-year - The company’s transformation of distributors and stores is anticipated to gradually improve performance - The company maintains a stable dividend payout ratio above 50%, with a TTM dividend yield of 5.19% and an interim dividend of HKD 0.15 per share, highlighting its investment value - Projected net profits for FY26-28 are HKD 2.23 billion, HKD 2.403 billion, and HKD 2.584 billion, respectively, with a "buy" rating maintained [2]

Core Viewpoint - Citi has raised the target price for Minhua Holdings (01999) to HKD 5.58, citing improved visibility on shareholder returns despite competitive pressures in domestic and international markets [1] Financial Performance - For the first half of the fiscal year 2026, Minhua Holdings reported a net profit increase of 0.6% year-on-year, with interim dividends remaining stable [1] - The gross profit margin in overseas markets increased by 1.1 percentage points to 39.3%, attributed to ongoing efficiency improvements and a decrease in raw material costs [1] Management Strategy - Minhua's management has indicated that capacity investment has peaked, and the focus for the coming years will be on maintaining stable dividends [1] - The commitment to shareholder returns is expected to support market sentiment in the short term, alongside anticipated stable revenue growth in fiscal year 2027, which may present medium-term upside potential [1]

Core Viewpoint - Despite facing competition in both domestic and international markets, Minhua Holdings (01999) achieved a 0.6% year-on-year increase in net profit for the first half of the 2026 fiscal year, maintaining its interim dividend, attributed to the company's proactive repositioning and improved operational efficiency [1] Financial Performance - The target price for Minhua Holdings has been raised from HKD 5 to HKD 5.58, with a maintained "outperform" rating, reflecting improved visibility of shareholder returns [1] - The gross profit margin in overseas markets increased by 1.1 percentage points to 39.3%, despite higher U.S. tariffs, due to ongoing efficiency improvements and a decrease in raw material costs [1] Management Strategy - Management indicated that capacity investment has peaked, and the focus for the coming years will be on maintaining stable dividends [1] - The commitment to shareholder returns is expected to support market sentiment in the short term, alongside anticipated stable revenue growth in the 2027 fiscal year, which may present mid-term upside potential [1]

Group 1 - Company Minhua Holdings (01999.HK) has seen a decline of over 5% in its stock price, currently down by 5.1% at HKD 4.84 [2] - The trading volume for Minhua Holdings reached HKD 37.7751 million [2]