Investment Rating - The investment rating for the company is "Cautious Recommendation" [20]. Core Viewpoints - The company has a solid cash flow, with cash and cash equivalents amounting to HKD 285 million, which supports future business expansion [20]. - The company operates a multi-channel retail strategy, combining physical stores with online platforms to adapt to new retail shopping trends [20]. - The company offers a high dividend yield of 11.29%, making it attractive for income-focused investors [20]. Company Overview - The company, International Home Retail Limited, primarily engages in the retail of home products through various brands, including "JHC Japan City," "123byELLA," and "CityLife" [4]. - It operates through three business segments: retail, wholesale, and franchising [4]. Shareholder and Management Team - The total share capital of the company is 724.02 million shares, with Hiluleka Limited holding a 45.24% stake [5]. - The founders, Mr. Liu Baihui and Ms. Wei Lixia, have been managing the company since its inception in 1991, ensuring stable operations [5]. Historical Development - The company was founded in 1991 and has expanded its retail network significantly through acquisitions and brand development over the years [6]. - By 2012, the company held a 69% market share in Hong Kong's home goods retail sector [6]. Main Business Analysis - The company’s primary brand, Japan City, focuses on essential home consumer goods, targeting the mid-to-low-end market [8]. - The brand "CityLife" caters to higher-income families seeking a premium shopping experience [11]. - The company has a diverse product sourcing strategy, with over 650 suppliers across 13 regions, including Japan, South Korea, and Europe [15]. Financial Analysis - For the fiscal year 2025, the company reported revenues of HKD 2.537 billion, a decrease of 5.59% year-on-year, and a profit attributable to shareholders of HKD 47.727 million, down 52.78% [18]. - The decline in revenue and profit is attributed to a challenging retail environment in Hong Kong and shifts in consumer purchasing behavior due to e-commerce [18]. Store Distribution - As of April 30, 2025, the company operated 367 stores, a net decrease of 9 stores compared to the previous year [19].