20 May 2025
Man Wah reported its Mar ended FY25 results with top line declined by 8.2% YoY to HK$17.2bn. GPM increased by 1.1ppt YoY to 40.5%. The improvement in overall GPM was mainly attributed to the declining RM prices, including a YoY drop of 3.0%/ 6.7%/ 9.8%/ 9.9% in average unit cost in steel/ leather/ chemicals/ packaging paper during FY25. S&D cost ratio was up by 0.2ppt YoY to 18.2% in FY25 as even though A&P cost ratio down from 3.1% in FY24 to 2.4% in FY25, overseas transportation and port expenses were up by 31% YoY amid increasing sea freight. Admin cost ratio was down from 5.2% to 4.4% due to a reversal of over-provision for a legal claim. NP decreased by 10.4% YoY to HK$2.06bn, mainly driven by fair value losses on investment properties of HK$71.2m (FY24: HK$2.5m loss), and provision for impairment of goodwill (FY25: HK$104.3m, FY24: HK$12.3m), PPE (FY25: HK$96.4m, FY24: nil) and intangible assets (FY25: HK$12.8m, FY24: nil). Excluding these one-off items, adjusted FY25 NP was up by 1.3% YoY to HK$2.35bn. The company declared its total DPS at HK$0.27 for FY25, representing a dividend payout ratio at 50.8% during the period (FY24: 50.7%).