Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported FY2026H1 results (from April 2025 to September 2025) with main revenue and net profit attributable to shareholders at HKD 80.45 billion and HKD 11.46 billion, respectively, showing a year-on-year change of -3% and +1% [2][6]. - Domestic sales continued to decline but at a reduced rate, while export sales remained stable. Domestic furniture sales decreased by 6%, with offline sales increasing by 14% and online sales decreasing by 12%. In terms of product categories, sofa and related products and mattresses and related products saw declines of 6% and 7%, respectively [7]. - Export revenue grew by 1% year-on-year, with North America, Europe, and other markets/Home Group showing increases of 0.3%, 4%, and 2%, respectively [7]. Summary by Sections Revenue - Domestic sales continued to decline, but the rate of decline has narrowed. The company is adjusting its strategies to improve performance in the domestic market [7]. - Export sales showed a slight increase, with specific declines in sofa sales in North America and Europe, while other product categories contributed positively [7]. Profitability - The company experienced improvements in gross margin and operating profit margin during FY2026H1, with gross margin and net profit margin increasing by 0.9 and 0.5 percentage points year-on-year [7]. - The decrease in raw material costs contributed to the improvement in margins, with an overall reduction of 6% in raw material costs [7]. Future Outlook - The company plans to adjust its domestic sales strategies, including restructuring dealer and store layouts and enhancing online sales channels [7]. - For export sales, the company is well-positioned to manage potential impacts from U.S. tariff policies due to its early and efficient overseas production layout [7]. - The company maintains a high dividend payout ratio of 50.8%, with an expected dividend yield of 6.2% if this ratio is maintained for the full year [7].
敏华控股（01999）：中报点评：经营存韧性，盈利略有提升