28 Jun 2024

Regina Miracle announced March-end FY24 results, with revenue decreased by 10.9% YoY to HK$7.02bn, mainly due to i) a 6.9% YoY decline in bras and intimate wear segment (59% of FY24 sales, FY23: 56%) on higher than normal retail inventory which dampened order demand, ii) a 5.1% YoY decline in sports products (FY24: 33%, FY23: 31%) mainly driven by continual destocking of downstream sports brands; and iii) 23%/25%/83% decline in consumer electronics components/bra pads & accessories/footwear segment.  GP was down by 16.7% YoY as GPM dropped by 1.5ppt to 22.6% amid operating deleverage as a result of decrease in sales, with RM recorded a 1.4ppt GPM decline to 23.7% in bras and intimate wear segment and 1.9ppt GPM decline to 21.4% in its sports products segment. Distribution and selling expense ratio was stable at 2.2% during FY24, while admin cost ratio declined by 0.9ppt to 8.0% as a result of operation streamlining and FX gain. As a result, adjusted FY24 NP was at HK$316.5m, translating to a 24.2% YoY decline, with NPM down 0.8ppt YoY to 4.5%. The company declared a full-year DPS of HK$0.057, representing a dividend payout ratio of no less than 30%.

CROSBY Research – Regina Miracle International (2199 HK): Expects to resume growth in FY25