Combine Will International Holdings (N0Z) H2 2023 earnings summary

Executive summary

• FY2023 net profit was HK$42.5m, down 0.5% YoY, despite revenue declining 17.0% to HK$1.11bn.

• Gross margin improved to 11.5% from 10.7% YoY, supported by operational optimisation.

Financial highlights

• FY2023 revenue was HK$1,113.2m, down 17.0% YoY; 2H revenue fell 17.8% to HK$602.1m.

• FY2023 gross profit was HK$128.5m, down 10.1%; 2H gross profit declined 8.2% to HK$72.8m.

• FY2023 profit before tax was HK$48.8m, down 19.6%; 2H profit before tax fell 25.8% to HK$26.1m.

• FY2023 profit after tax was HK$42.5m, down 0.5%; 2H profit after tax rose 9.4% to HK$22.0m.

• Basic EPS was 131.56 cents for FY2023, down 0.5%; 2H EPS rose 9.5% to 68.11 cents.

Outlook and guidance

• Green products are targeted to exceed 40% of manufacturing output by end-2024.

• Active discussions with potential new customers are underway; marketing efforts are expected to yield results from 2024.

• Plush toy facility expansion in Indonesia is targeted for completion by end-2024 to meet demand.

• Potential material suppliers in Indonesia, Taiwan, South Korea and Vietnam are being assessed to strengthen supply chain resilience.

• Singapore subsidiary is intended to serve as a Southeast Asia business hub, improving customer service and supporting growth.