Pacific Textiles (1382) H2 24/25 earnings summary

Executive summary

• Revenue increased by 6.7% year-over-year to HK$5,057.6 million, driven by an 11.3% rise in sales volume despite a 4.5% drop in average sales price.

• Profit attributable to equity holders was HK$167.6 million, up 0.3% compared to the previous year.

• EBITDA rose 12.5% to HK$473.4 million, reflecting improved operational efficiency.

• The Vietnam Hai Duong Plant was impacted by typhoon Yagi, resulting in a loss, while the new Vietnam Nam Dinh Plant began bulk production but posted a first-year loss.

Financial highlights

• Gross profit margin declined to 7.6% from 10.5% year-over-year.

• Net profit margin was 3.3%, slightly down from 3.5% last year.

• Return on equity was 5.5%, compared to 5.8% in the prior year.

• Interest coverage ratio improved to 4.4 from 4.0.

• Total assets decreased by 4.6% to HK$5,310.4 million.

Outlook and guidance

• Management expects full recovery of the Vietnam Hai Duong Plant and improved profitability in FY2026.

• The Vietnam Nam Dinh Plant is expected to gradually improve efficiency and contribute to growth.

• Short-term performance may be negatively impacted by ongoing tariff negotiations between China, Vietnam, and the U.S.

• Focus remains on higher value-added fabrics, innovation, and market diversification.

• Lower interest rates anticipated in FY2026 may support expansion and reduce finance costs.