Crystal International Group (2232) H1 2026 earnings summary

Executive summary

• Revenue rose 5.4% year-over-year to US$1,296 million for H1 2026, with net profit up 10.6% to US$109 million and net profit margin improving to 8.4% from 8.0%.

• Strong order momentum and resilient consumer demand in key markets drove growth, with limited impact from Middle East conflict.

• Interim dividend declared at HK18.0 cents per share, a 10.4% increase year-over-year, with a payout ratio of 60%.

• Capital expenditure surged to US$112 million, mainly due to a strategic land acquisition in Egypt for future manufacturing expansion.

Financial highlights

• Gross profit increased 5.6% to US$256 million; gross margin stable at 19.8%.

• Positive operating cash flow of US$162 million; cash balances rose to US$444 million as of 30 June 2026.

• Net cash position of US$439 million at period end; gearing ratio remained nil.

• Basic EPS was 3.81 US cents, up from 3.44 US cents year-over-year.

• Bank borrowings stood at US$18 million, all repayable within one year.

Outlook and guidance

• Second half 2026 growth expected to outpace first half, driven by productivity gains and labor expansion.

• Automation and workforce expansion in Vietnam, Bangladesh, and China to support higher output.

• Commitment to stable and increasing dividends alongside strategic investments.