Core Viewpoint - The company reported FY25 results that met expectations, with significant growth in revenue and net profit, driven by strong performance in sports products and stable demand in the intimate apparel segment [1][2]. Financial Performance - FY25 revenue increased by 11.7% to HKD 7.84 billion, while net profit rose by 28.4% to HKD 180 million [1]. - In 2HFY25, revenue grew by 11.2% to HKD 3.86 billion, and net profit surged by 219.6% to HKD 120 million [1]. - The company declared a final dividend of HKD 0.043 per share, resulting in a total payout ratio of 45.3% for FY25 [1]. Segment Performance - Revenue from intimate apparel and sports products grew by 3.0% and 26.9% to HKD 4.24 billion and HKD 2.93 billion, respectively [2]. - Sports apparel saw nearly 50% growth in functional clothing categories, with revenue exceeding HKD 1.1 billion [2]. - Revenue from consumer electronics accessories increased by 43.2% to HKD 410 million, while revenue from cups and other accessories declined by 15.0% to HKD 250 million due to the cessation of footwear operations [2]. - Victoria's Secret revenue in China rose by 4.4% to HKD 1.97 billion, with e-commerce sales growing at a double-digit rate [2]. Profitability and Cost Management - Gross margin improved by 0.8 percentage points to 23.4% due to increased capacity utilization [3]. - Operating expenses remained stable, with sales, management, and R&D expense ratios increasing slightly by 0.1 percentage points each [3]. - The company incurred HKD 220 million in additional operating expenses due to the relocation of its domestic production base [3]. - Overall, net profit margin increased by 0.3 percentage points to 2.3% [3]. Future Outlook - The company expects high order visibility for 1HFY26, but the impact of U.S. tariff policies on consumer purchasing power remains uncertain for 2HFY26 [3]. - The intimate apparel segment is expected to remain stable, while sports products are anticipated to continue growing due to Bonding apparel [3]. - The company plans to implement cost-reduction measures, including decreased capital expenditures and debt management [3]. Earnings Forecast and Valuation - FY26 earnings forecast has been revised down by 27.8% to HKD 220 million, with FY27 earnings projected at HKD 360 million [3]. - The current stock price corresponds to a P/E ratio of 12x for FY26 and 7x for FY27, maintaining an outperform rating [3]. - The target price has been reduced by 21% to HKD 2.38, indicating a potential upside of 13.3% from the current stock price [3].
维珍妮(02199.HK)：FY25运动服装产品收入高增 关注关税进展