Investment Rating - The report maintains a "Buy" rating for the company, expecting a target price of 4.68 HKD, with a projected relative return of over 20% within six months [12]. Core Views - The company reported a revenue of 8.5 billion HKD for FY25H1, a decrease of 7.4% year-on-year, with specific declines in various product categories [12]. - The Chinese market is experiencing weak consumer growth, with a notable drop in consumer confidence compared to last year [12]. - The company anticipates a gradual recovery in the home furnishings market due to increased government support and consumer stimulus measures [12]. - The overseas market shows signs of recovery, with North American sales increasing by approximately 18%, despite a 10% decrease in average selling prices due to structural changes [12]. Summary by Sections Financial Performance - FY25H1 net profit attributable to shareholders was 1.14 billion HKD, a slight increase of 0.3%, with a net profit margin of 13.7% compared to 12.7% in FY24H1 [12]. - Revenue projections for FY25-27 are adjusted to 17.8 billion HKD, 18.5 billion HKD, and 19.9 billion HKD, with net profits expected to be 2.28 billion HKD, 2.42 billion HKD, and 2.62 billion HKD respectively [12]. Market Analysis - The report highlights that the penetration rate of functional sofas in the Chinese market has increased from 7.2% to 9.7% and is expected to exceed 13% within five years [12]. - The company is focusing on enhancing store operations and expanding into lower-tier markets, with a net increase of 280 brand stores during the review period [12]. Strategic Initiatives - The company is actively participating in exhibitions to expand new channels and improve talent development within its sales team [12]. - There is a strong emphasis on product development and upgrading in response to recovering overseas market demand [12].
敏华控股：期待内需市场企稳