25 Mar 2024
Tai Hing’s FY23 revenue increased by 20.1% YoY to HK$3.21bn, with revenues from HK & Macau/China rose by 24.1%/1.6% YoY to HK$2.72bn/HK$0.49bn, benefiting from the reopening of the Chinese Mainland/HK border and promotional activities by HK Govt in stimulating tourism and domestic consumption in HK. Breaking down revenue by the major brands, sales of Tai Hing/ Men Wah/ TeaWood/ Asam Chicken Rice increased by 14.5%/ 21.0%/ 26.7%/ 27.5% YoY to HK$1,206m/ HK$893m/ HK$346m/ HK$247m and accounted for 37.6%/27.8%/10.8%/7.7% of total revenue (FY22: 39.4%/26.9%/10.2%/7.2%). GPM was up by 1.2ppt to 73.8% on i) adoption of centralized procurement approach to achieve better price negotiation and bargaining power; and ii) further lower the cost of RM via higher utilization of its factories in Mainland China and HK for processing and production.