16 Nov 2022
Man Wah reported its Sept ended 1HFY23 results with top line decreased by 8.0% YoY to HK$9.5bn and NP increased by 10.5% YoY to HK$1.1bn. Gross profit dropped by 2.5% YoY to HK$3.6bn with overall GPM increased by 2.6ppt YoY to 38.8%. NPM increased by 2.1ppt YoY to 11.8%. The company increased its interim DPS from HK$0.13 in 1HFY22 to HK$0.15, which represents a 54.0% dividend payout ratio vs 52.0% in 1HFY22. Revenue from China was down by 10.7% YoY to HK$5.7bn with 6,230 retail stores (end-Mar 2022: 5,968), accounting for 60% of total revenue (1HFY22: 62%). Online sales dropped slightly by 0.9% YoY in China, with sales in recent “Double Eleven” estimated to be flat YoY as a higher rate of goods returned wiped out a 20% growth in orders. Revenue from North America and Europe had increased by 0.1%/2.1% and accounted for 26.9%/7.0% of total sales, respectively. As for its Home Group business, revenue was down by 40% YoY and accounted for only 2.9% of its total revenue, due to the impact of pandemic and the Ukraine war. According to mgmt., its production facilities in Ukraine have not been materially disrupted during the period.