Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported FY2025 results (April 2024 to March 2025) with main revenue and net profit of HKD 16.903 billion and HKD 2.063 billion, respectively, reflecting a year-on-year decline of 8% and 10% [2][6] - In FY2025H2, the company experienced a revenue decline in domestic sales, while international sales showed a slowdown; however, operating profit improved due to raw material price reductions and cost control [2][6] - The company is focusing on internal transformation to enhance competitiveness through channel and marketing changes, with a long-term view on its core competitive advantages despite short-term tariff disturbances in international sales [2][10] Revenue Summary - Domestic sales faced pressure in FY2025H2, with furniture sales down 17% in RMB terms, and online and offline sales decreasing by 18% and 11%, respectively [7] - International sales grew by 4% in FY2025H2, with North America and Europe showing increases of 1% and 11%, respectively [7] Profitability Summary - The gross margin and operating profit margin improved in FY2025, with gross margin increasing by 1.1 percentage points year-on-year [10] - The company managed to reduce advertising and management expenses by 30% and 22%, respectively, while tariff expenses decreased significantly by 89% due to increased shipments from its Vietnam factory [10] Future Outlook - The company anticipates continued pressure from the real estate and consumer environment but expects marginal benefits from national subsidies for home furnishings [10] - Plans include restructuring dealer and store layouts, enhancing online presence, and optimizing product positioning to improve competitiveness [10] - The company projects net profits of HKD 2.398 billion, HKD 2.590 billion, and HKD 2.849 billion for FY2026, FY2027, and FY2028, respectively, with corresponding PE ratios of 6.9, 6.3, and 5.8 [11]
敏华控股（01999）：FY2025A点评：收入因内销拖累，经营盈利改善，期待内部变革现成效