Sa Sa International (178) H2 25/26 earnings summary

Executive summary

• Turnover increased by 14.2% year-over-year to HK$4,383M for the year ended 31 March 2026, with group profit rising 160.5% to HK$201M, driven by strong Hong Kong and Macao performance and closure of offline Chinese Mainland operations.

• Gross profit margin declined by 1.3 ppt to 38.2%, while basic EPS rose to 6.5 HK cents from 2.5 HK cents year-over-year.

• Final dividend per share doubled to 3.4 HK cents, with a special dividend of 1.9 HK cents declared, totaling 6.45 HK cents per share and a payout ratio near 100%.

• First quarter FY2026/27 turnover up 24.0% year-over-year, with offline sales in Hong Kong and Macao up 32.5%.

Financial highlights

• Offline sales grew 15.7% year-over-year to HK$3,613M, while online sales increased 7.6% to HK$770M.

• Hong Kong & Macao contributed 79.7% of turnover, Mainland China 9.0%, and Southeast Asia & others 11.3%.

• Net profit from continuing operations reached HK$202.7M, up from HK$130.9M last year.

• Cash and cash equivalents increased 36% to HK$505M; total available funds of HK$820M as of 31 March 2026.

• Inventories rose to HK$767M, with stock turnover days steady at 103.

Outlook and guidance

• Plans to open 6–7 new stores in Hong Kong and Macao in the first half of FY2026/27.

• Focus on optimizing product portfolio, expanding store network in HK & Macao, and strengthening APAC presence.

• Continued emphasis on online growth in Chinese Mainland and Southeast Asia, leveraging social media and e-commerce platforms.

• Prudent approach to growth amid global economic and geopolitical uncertainties.

• Incubation of potential brands to enhance the brand ecosystem is a key growth driver.