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 HK438.79millionforthefirsthalfofthefiscalyearendingSeptember2024,reflectingayear−on−yeargrowthof2.2 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 HK420million,drivenbybothdomesticandexportdemand[2].−Thecompanyisfocusingonoptimizingoperationalefficiency,benefitingfromimprovedoperationalefficiencyinexistingfactoriesinVietnamandrentalincomefromthecentralfactory[2].SummarybySectionsFinancialPerformance−Totalrevenueforthefiscalyear2023/24isprojectedatHK 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 HK774.2million,withagrossmarginof17.7 380.7 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].
