18 November 2025
Man Wah reported its Sep-ended 1HFY26 results with top line declined by 3.1% YoY to HK$8.04bn mainly due to a MSD YoY drop in both sofas and bedding sales. GPM increased by 0.9ppt YoY to 40.4%. The improvement in overall GPM was mainly attributed to the declining RM prices, including a YoY drop of 10.4%/ 9.8%/ 6.8%/ 2.6% in average unit cost in leather/ chemicals / steel products/ fabric during 1HFY26. S&D cost ratio was up by 0.9ppt YoY to 19.1% during the period as i) tariff tax to US increased from HK$6.7m in 1HFY25 to HK$78.8m in 1HFY26 on tariffs imposed on Vietnam by US during the period; ii) A&P cost ratio up from 2.5% in 1HFY25 to 2.8% in 1HFY26 on the back of increased promotion in online platforms, and iii) domestic transportation as a % of revenue was up from 2.4% in 1HFY25 to 2.8% in 1HFY26 on with higher online sales by sales volume. Admin cost ratio was up from 3.8% to 4.5% due to a out-of-court settlement of the litigation with a former supplier. As a result, NP increased by 0.6% YoY to HK$1.15bn. The company declared its interim DPS of HK$0.15 for 1HFY26, with payout ratio at 50.8%.