Migao Group Holdings (9879) H2 25/26 earnings summary

Executive summary

• FY2026 revenue rose 24.4% YoY to RMB6,175.3m, while profit increased 11.3% to RMB378.0m; basic EPS was RMB0.41, up 20.6%.

• Revenue growth reflected higher average selling prices for potash-based fertilizers; sales volume declined 3.0% to 2.275m tonnes.

Financial highlights

• Gross profit increased 3.2% to RMB662.3m, while gross margin fell to 10.7% from 12.9%, as higher imported input costs were not fully passed through.

• Profit before tax rose to RMB460.8m from RMB413.4m; income tax expense increased to RMB82.8m from RMB73.9m.

• Profit attributable to owners was RMB373.5m versus RMB307.5m; basic and diluted EPS were both RMB0.41 versus RMB0.34.

Outlook and guidance

• Priorities include product innovation, broader product offerings, operational efficiency and exploring new markets to serve demand for high-efficiency fertilizers.

• Vietnam Facility construction is planned in stages, subject to outstanding approvals; the facility is intended to support expansion into emerging Asian markets.

• Strategic development is also being evaluated in the Middle East, with geopolitical considerations factored into a prudent investment approach; expansion targets include Asia, the Middle East and Europe.