20 Mar 2023

Stella’s FY22 revenue was up by 5.9% YoY to US$1,631m, mainly driven by a 0.4% YoY increase in shipment to 56.0m pairs and 5.2% YoY increase in ASP to US$28.5/pair (FY21: US$27.1/pair). GPM was up by 1.0ppt to 21.6% due to improved customer/product mix, while partially offset by higher RM costs. Selling expense ratio stayed flat at 2.7%, while admin expense ratio was down by 1.3ppt YoY to 9.6% on good cost control. Reported NP was up 29% YoY to US$117m, but if we include one-off expenses such as FV loss, deregistration of subsidiaries gain/loss, disposal loss on PPE and writeback of inventories provisions etc, adjusted NP would be up by 32% YoY to US$128m.

CROSBY Research – Stella International (1836 HK): Ramping up its capacity in the coming 3 years