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

Executive summary

• Turnover rose 14.2% year-over-year to HK$4,382.6 million, with profit for the year surging 160.5% to HK$200.5 million, driven by strong Hong Kong and Macao performance and closure of offline Chinese Mainland operations.

• Gross profit increased 10.5% to HK$1,674.6 million, though gross margin declined by 1.3ppt to 38.2% due to product mix changes.

• Final dividend of 3.4 HK cents and special dividend of 1.9 HK cents per share proposed, totaling 6.45 HK cents per share for the year, representing nearly 100% payout.

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

Financial highlights

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

• Basic and diluted EPS from continuing operations were 6.5 HK cents, up from 4.2 HK cents.

• Cash and cash equivalents increased 36% to HK$504.8 million; net cash from operations was HK$267.3 million.

• Gearing ratio remained zero; total equity rose 10.8% to HK$1,282.5 million.

• Inventories rose to HK$767.3 million, 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 expanding offline footprint, optimizing store efficiency, and enhancing omni-channel promotions.

• 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.