Jinwu Financial News | Changjiang Securities issued a Research Report indicating that MAN WAH HLDGS (01999) released its FY2025H1 results (from April to September 2024), reporting a main revenue and net income of 8.305/1.139 billion HKD, down 7% and up 0.3% year-on-year respectively. In terms of revenue, domestic sales faced pressure but showed recovery recently with national subsidies, while export sales continued to show a favorable growth trend. In terms of profitability, both gross margin and profit margin improved, which is related to falling raw material prices and cost control.

Outlook: 1) Domestic sales: In the context of the real estate and consumer environment, the company will optimize and improve its product matrix by capitalizing on the increasing penetration of functional sofas, enhance mattress market share, and cultivate custom potential businesses. From the channel perspective, there will be online multi-platform operations alongside continued offline store expansion. The recent increase in national subsidies will help stabilize the industry and concentrate market share. 2) Export sales: The improvement trend is expected to continue, bolstered by the company's strengths in manufacturing, supply chain, and capacity.

The firm stated that the company has built high barriers in branding, products, and supply chain, and has reinforced its competitiveness through design marketing and channel transformation, being bullish on its continued market share growth in the soft furnishings industry. This year, the company has streamlined and optimized its product lines and brand matrix in response to consumer trends, with a focus on refined operations at the channel level, laying a solid foundation for long-term development. It is estimated that the net income for FY2025-2026 will be 2.45/2.78 billion HKD, corresponding to a PE ratio of 7.9/7.0x, maintaining a "Buy" rating.