Skip to content
Master Your Financial Future — Master Your Money — Financial Insights Unveiled — Finance in the Cloud Age

Man Wah’s profits dip but share price defies downturn with Remacro IPO plans

A slump in revenue couldn’t sink Man Wah’s stock—now its Remacro subsidiary is poised for a game-changing IPO. Can innovation turn the tide?

,   and  Administrator
2 min read
In this image we can see two men are sitting on the chair and playing a board game which is on the...
In this image we can see two men are sitting on the chair and playing a board game which is on the table. In the background, we can see garments, banner, cupboard, bag and a boy. On the right side of the image, we can see a person and pavement. It seems like a shop in the right top of the image.

Man Wah’s profits dip but share price defies downturn with Remacro IPO plans

Man Wah Holdings Ltd., a leading furniture manufacturer, has reported a decline in revenues and profits for the last financial year. Despite this, the company's share price has shown resilience, and it is preparing a significant move to list its components subsidiary, Remacro Technology Co. Ltd., on China's NEEQ market.

Man Wah's revenues dipped 8.2% to HK$16.9 billion, while net profit decreased by 10.4% to HK$2.06 billion. Despite these setbacks, the company's share price has risen about 15% over the past six months, although it has a year-to-date decline of 1.6%.

The listing of Remacro, which contributes revenues of about HK$1.67 billion ($215 million) classified under 'other products', is expected to provide it with access to funding as a brand in its own right. This move could support continued innovation and offer scope for future gains in Man Wah's stock. After listing, Remacro will remain a subsidiary, with Man Wah holding over 80% of its shares.

Both Man Wah and Remacro have shown improvements in gross profit margins. Man Wah's gross margin increased from 39.4% to 40.5% due to cost controls, while Remacro's gross profit margin rose to 30%, a three percentage point increase from the previous year. Despite these improvements, Man Wah trades at a forward P/E ratio of around 8.9 times, below its peers Jason Furniture and Henglin Home Furnishings.

Man Wah's financial performance has shown mixed results, with declining revenues and profits but a resilient share price. The listing of Remacro on the NEEQ market is expected to bring funding and potential future gains, while both companies have demonstrated improvements in gross profit margins. Despite this, Man Wah's valuation remains below its peers.

Read also:

Related

Latest