NAMESON HLDGS-南旋控股：稳定成长预期与进取的扩张计划

Investment Rating - The report does not provide a specific investment rating for Nam Hing Holdings (01982 HK) [2][15] Core Views - Nam Hing Holdings achieved a total revenue of HK $4 38 billion in FY2023 24, a year on year decrease of 4 9% However, net profit increased by 1 4x to HK$ 380 7 million due to a 1 5 percentage point increase in gross margin and reduced impairment losses from the Myanmar factory [2] - The company declared a final dividend of HK $0 035 per share, representing a dividend payout ratio of 81 9% for the full fiscal year [2] - Sales volume of knitted products rebounded in H2 FY2023 24, offsetting the impact of a decline in average selling price (ASP) The ASP of knitted products dropped significantly from HK$ 125 6 to HK $109 2 per piece, mainly due to a sharp decline in cashmere product prices and lower raw material costs [2] - The company expects stable sales in FY2024 25 but is cautious about future rush orders from major customers, which could lead to lower than expected sales volume and further pressure on ASPs [2] - Nam Hing Holdings has an aggressive expansion plan, with a current fabric production capacity of 30 million pounds per year The company plans to invest approximately HK$ 400 million to build a new fabric production facility, expected to be completed by 2026, adding an additional 30 million pounds of capacity However, the fabric business is not yet stable, with low capacity utilization and no breakeven achieved, which could pressure the company in the short term [2] - The company also plans to invest HK $150 million in FY2024 25 and HK$ 100 million in FY2025 26 to expand its Vietnam capacity to meet customer demand for production outside China [2] Financial Performance - Revenue for FY2023 24 was HK $4 38 billion, down 4 9% year on year [2] - Gross profit increased to HK$ 774 2 million, with a gross margin of 17 7%, up from 16 2% in FY2022 23 [2] - Net profit surged to HK $380 7 million, a 140 5% year on year increase [2] - Return on equity (ROE) improved to 15 0% in FY2023 24, up from 6 2% in the previous fiscal year [2] - The company's market capitalization is HK$ 1 7 billion, with a current share price of HK $0 730 [2] Industry Comparison - Nam Hing Holdings has a market capitalization of HK$ 1 66 billion, with a price to earnings (P E) ratio of 4 6x and a price to book (P B) ratio of 0 7x [5] - The company's revenue of HK $4 38 billion and gross margin of 17 7% are lower compared to peers such as Shenzhou International (02313 HK), which has a revenue of HK$ 27 6 billion and a gross margin of 24 3% [5] Expansion and Capital Requirements - The company's expansion plans, including the new fabric production facility and Vietnam capacity expansion, could lead to increased capital requirements and potentially higher debt levels or reduced dividend payout ratios [5]