Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a total revenue of HKD 17.249 billion for the fiscal year ending March 31, 2025, representing a year-on-year decrease of 8.24% [2] - The net profit attributable to the parent company was HKD 2.063 billion, down 10.41% year-on-year, while the adjusted net profit increased by 1.3% to HKD 2.350 billion [2] - The company plans to distribute a final dividend of HKD 0.12 per share, with a payout ratio of 50.80% [2] Revenue Analysis - The company experienced a decline in revenue from the Chinese market by 16.49% year-on-year, while the North American market grew by 3.17% and the European market increased by 19.19% [3] - The Chinese market accounted for 58.70% of total revenue, indicating its continued importance despite current challenges [3] - The company is focusing on optimizing its offline channels, increasing the number of stores to 7,367 in the Chinese market [3] Profitability Analysis - The company's gross margin was 40.49%, an increase of 1.12 percentage points year-on-year, while the net margin was 12.75%, a slight decrease of 0.27 percentage points [4] - The gross margins for different product lines varied, with the sofa and related products seeing an increase, while the bedding segment faced a decline [4] - Overall, the company managed to control its operating expenses effectively, resulting in a total expense ratio decrease of 0.78 percentage points to 23.51% [4] Investment Recommendations - The company is positioned in a large consumer market with significant growth potential, particularly in its domestic sales and recovering export business [5] - Revenue forecasts for FY2026 to FY2028 have been adjusted to HKD 18.063 billion, HKD 19.369 billion, and HKD 20.889 billion respectively, reflecting a cautious outlook [5] - The expected earnings per share (EPS) for the same period are projected at HKD 0.59, HKD 0.65, and HKD 0.71, maintaining a "Buy" rating [5]
敏华控股：外销表现亮眼，经营效益改善-20250528