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].

Core Viewpoint - The company reported a slight decline in revenue but a modest increase in net profit, indicating resilience in its operations despite challenging market conditions [1][2] Financial Performance - The company’s FY26H1 revenue was HKD 8.04 billion, a year-on-year decrease of 3.1% - Net profit attributable to shareholders was HKD 1.146 billion, reflecting a year-on-year increase of 0.6% - Gross margin stood at 40.4%, up by 0.9 percentage points year-on-year - Net profit margin was 14.2%, an increase of 0.5 percentage points year-on-year [1] Domestic Sales - Domestic sales revenue reached HKD 4.67 billion, down 6.0% year-on-year, but the decline was narrowing - Gross margin for domestic sales improved to 41.0%, up by 0.8 percentage points year-on-year, benefiting from lower raw material prices - E-commerce sales grew by 13.6% to HKD 1.14 billion, while offline sales fell by 12.3% to HKD 3.059 billion - The company reduced its store count to 7,040, a net decrease of 327 stores [1] Product Performance - Sofa sales slightly outperformed bed products, with domestic sofa revenue at HKD 3.084 billion (down 6.1%) and bed revenue at HKD 1.119 billion (down 7.4%) - Sofa sales volume increased by 0.1%, while prices decreased by 6.2%, primarily due to a higher proportion of online sales [1] International Sales - Revenue from North America and Europe grew to HKD 2.16 billion and HKD 0.765 billion, respectively, with year-on-year increases of 0.3% and 4.3% - The gross margin for international sales was 39.3%, up by 1.1 percentage points year-on-year, driven by lower raw material costs and improved operational efficiency [1] Expenses - Sales expense ratio increased to 19.13%, up by 0.9 percentage points year-on-year, primarily due to tariffs imposed by the U.S. on Vietnam and increased e-commerce promotion costs - Tariff expenses rose from HKD 6.65 million to HKD 78.83 million, accounting for a year-on-year increase of 0.9 percentage points in revenue proportion [2] Investment Outlook - The domestic penetration rate for functional sofas is expected to continue rising, projected at 12.2% by 2024, an increase of 2.5 percentage points year-on-year - The company’s transformation of distributors and stores is anticipated to gradually improve performance - The company maintains a stable dividend payout ratio above 50%, with a TTM dividend yield of 5.19% and an interim dividend of HKD 0.15 per share, highlighting its investment value - Projected net profits for FY26-28 are HKD 2.23 billion, HKD 2.403 billion, and HKD 2.584 billion, respectively, with a "buy" rating maintained [2]

公司点评 | 敏华控股 收入降幅收窄，利润率稳中有升 敏华控股（01999.HK）2026 财年中期业绩点评 公司发布 FY26H1 主营收入 80.4 亿港元，同比-3.1%；归母净利润 11.46 亿 港元，同比+0.6%；毛利率 40.4%，同比+0.9pct；净利率 14.2%，同比+0.5pct。 | | 2024 | 2025 | 2026E | 2027E | 2028E | | --- | --- | --- | --- | --- | --- | | 营业收入（百万港元） | 18,411.20 | 16,902.63 | 17,097.85 | 17,826.52 | 18,653.44 | | YoY(%) | 6.11 | -8.19 | 1.15 | 4.26 | 4.64 | | 净利润（百万港元） | 2,302.37 | 2,062.62 | 2,230.39 | 2,402.86 | 2,583.85 | | YoY(%) | 20.23 | -10.41 | 8.13 | 7.73 | 7.53 | | EPS(摊薄/港元) | 0.59 | 0.53 | 0.58 | 0 ...

Core Viewpoint - The company reported a decline in FY25 revenue and net profit, primarily due to fair value losses and impairment provisions, but showed resilience in e-commerce and North American markets [1][2] Group 1: Financial Performance - FY25 total revenue was HKD 16.9 billion, down 8.2% year-on-year; net profit attributable to shareholders was HKD 2.06 billion, down 10.4% year-on-year [1] - Excluding fair value changes and impairment provisions, net profit was HKD 2.35 billion, up 1.3% year-on-year, with a net profit margin of 13.9%, an increase of 1.3 percentage points [1] Group 2: Domestic Sales - Domestic sales revenue was HKD 9.93 billion, down 17.2% year-on-year, with H2 revenue also at HKD 4.95 billion, down 17.2% [1] - The gross margin for domestic sales was 40.4%, unchanged year-on-year, with H2 gross margin at 40.6%, up 1 percentage point [1] - E-commerce outperformed offline sales, with FY25 e-commerce and offline revenues at HKD 2.19 billion and HKD 6.8 billion, down 16.3% and 16.6% year-on-year respectively [1] Group 3: Product Performance - Sofa sales outperformed bedding, with domestic sofa and bedding revenues at HKD 6.58 billion and HKD 2.41 billion, down 15.4% and 19.4% year-on-year respectively [1] - Sofa sales volume and price decreased by 10.6% and 5.4% year-on-year [1] Group 4: International Sales - North American revenue was HKD 4.42 billion, up 3.2% year-on-year, while European revenue was HKD 1.47 billion, up 22.9% year-on-year [2] - H2 revenue for North America and Europe was HKD 2.27 billion and HKD 0.74 billion, up 0.9% and 11% year-on-year respectively [2] - Gross margins for North America and Europe were 41.5% and 31%, up 4.4 and 0.7 percentage points year-on-year [2] Group 5: Investment Outlook - The domestic functional sofa penetration rate is expected to continue increasing, with a forecasted improvement in performance due to dealer and store transformations [2] - The company has overseas bases in Vietnam and Mexico to mitigate tariff changes, and the high growth in the European market reduces reliance on the U.S. [2] - The current valuation is at a historical low, with a stable dividend rate above 50% (FY25 dividend rate at 50.8%) and a dividend yield of 6.4%, indicating strong investment value [2]

Core Viewpoint - The company reported a decline in both revenue and net profit for FY2025, with a focus on the challenges faced in domestic sales and a slight slowdown in international sales [1][2]. Revenue Summary - For FY2025, the company achieved a main revenue of 16.903 billion HKD and a net profit of 2.063 billion HKD, representing a year-on-year decrease of 8% and 10% respectively [1]. - In FY2025H2, the revenue was 8.597 billion HKD and net profit was 0.924 billion HKD, showing a decline of 9% and 21% year-on-year [1]. - Domestic sales faced pressure with a 17% decline in furniture sales, while online and offline sales decreased by 18% and 11% respectively [1]. - International sales showed a slight increase of 4%, with North America and Europe growing by 1% and 11% respectively [1]. Profitability Summary - The company experienced improvements in gross margin and operating profit margin due to raw material price reductions and cost control measures [2]. - The gross margin and net profit margin for FY2025 increased by 1.1 and decreased by 0.3 percentage points respectively [2]. - The average unit costs for various materials decreased, with leather and chemicals seeing reductions of 6.7% and 9.8% respectively [2]. - Advertising and management expenses decreased by 30% and 22% respectively, while tariff expenses dropped significantly by 89% due to increased shipments from Vietnam [2]. Future Outlook - Domestic sales are expected to face ongoing pressure from the real estate and consumer environment, but there are marginal benefits from national subsidies for home furnishings [3]. - The company plans to restructure its dealer and store layout to enhance operational efficiency and improve brand presence through new online channels [3]. - For international sales, if the current low tariff levels in the U.S. persist, the impact may remain manageable, with advantages in overseas production capacity becoming more evident [3]. - The company maintains a dividend payout ratio of 51%, with projected net profits for FY2026 to FY2028 expected to be 2.4 billion, 2.59 billion, and 2.85 billion HKD respectively, corresponding to PE ratios of 6.9, 6.3, and 5.8 times [3].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported FY2025A results (April 2024 to March 2025) with main revenue and net profit attributable to shareholders at HKD 16.903 billion and HKD 2.063 billion, respectively, reflecting a year-on-year decline of 8% and 10% [2][5]. - In FY2025H2, the company experienced a revenue of HKD 8.597 billion and a net profit of HKD 0.924 billion, down 9% and 21% year-on-year [2][5]. - The revenue decline was primarily due to pressure on domestic sales, while external sales showed a slight slowdown [6]. - The company is focusing on internal transformation to enhance competitiveness through channel and marketing changes, with a strong emphasis on its long-term core competitive advantages despite short-term tariff disturbances in external sales [2][6]. Revenue Summary - Domestic sales faced significant pressure, with furniture sales in H2 down 17% (16% in RMB terms), and online and offline sales decreasing by 18% and 11%, respectively [6]. - The company reduced its brand specialty stores by 149 to 7,367 in H2, although there was a net increase of 131 stores for the full year [6]. - External sales grew by 4% in H2, with North America and Europe showing increases of 1% and 11%, respectively [6]. Profitability Analysis - The gross margin and operating profit margin improved in FY2025 due to raw material price reductions and cost control measures [6]. - The gross margin and net profit margin increased by 1.1 and -0.3 percentage points year-on-year, respectively [6]. - The average unit costs for various materials decreased, with significant reductions in advertising and management expenses by 30% and 22%, respectively [6]. Future Outlook - The company anticipates continued pressure from the real estate and consumer environment but expects marginal benefits from national subsidies for home furnishings [6]. - Plans include restructuring dealer and store layouts, enhancing online presence, and optimizing product series positioning to improve competitiveness [6]. - The company aims to maintain a dividend payout ratio of 51%, corresponding to a current dividend yield of 6.4% [6]. Earnings Forecast - Projected net profits for FY2026 to FY2028 are HKD 2.398 billion, HKD 2.590 billion, and HKD 2.849 billion, respectively, with corresponding PE ratios of 6.9, 6.3, and 5.8 [10].