MAN WAH Reports 10.1% Increase in Revenue and 9.0% Drop in Net Income for FY2023 Q2
December 27, 2022
Earnings report
Man Wah Intrinsic Value – MAN WAH ($SEHK:01999) is a Hong Kong based company, listed on the Hong Kong Stock Exchange and is primarily known for its home appliance manufacturing, retail and distribution activities. On December 1 2022, the company released their financial results for FY2023 Q2 as of September 30 2022. For the second quarter, MAN WAH achieved total revenue of HKD 1.1 billion, which was an increase of 10.1% year over year. This was largely driven by increased sales from the company’s home appliance portfolio, as well as higher revenue from retail and distribution activities. The company reported net income of HKD 9.3 billion, which was a decrease of 9.0% year over year.
This was due to a combination of rising costs of raw materials and labor expenses, as well as higher operating expenses during the quarter. Despite the decline in net income, MAN WAH showed strong performance in other areas. This indicates that the company achieved significant cost savings in its operation. The company is expected to continue to focus on cost savings and optimizing its supply chain in order to drive further growth in the coming quarters.
Share Price
On Thursday, MAN WAH reported a 10.1% increase in revenue and 9.0% drop in net income for FY2023 Q2. This news saw the stock open at HK$7.3 and close at HK$7.6, 6.9% higher than the previous closing price of 7.1. The increased revenue was attributed to the company’s improved performances in its real estate and hospitality sectors.
However, the higher revenue did not translate into higher profits due to higher operating expenses associated with the growth of the company’s businesses. Despite the decline in net income, MAN WAH’s stock saw a 6.9% increase on Thursday, with investors expecting the company’s performance to improve in the future. This is likely due to the company’s plans for expanding its businesses in real estate and hospitality sectors, which should help to boost its revenue and net income in the coming quarters. Investors responded positively to the news, pushing the stock up 6.9% from its previous closing price of 7.1. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Man Wah. More…
| Total Revenues | Net Income | Net Margin |
| 20.57k | 2.35k | 11.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Man Wah. More…
| Operations | Investing | Financing |
| 3.34k | -3.03k | -942.84 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Man Wah. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.02k | 7.15k | 2.78 |
Key Ratios Snapshot
Some of the financial key ratios for Man Wah are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.9% | 16.1% | 14.7% |
| FCF Margin | ROE | ROA |
| 6.1% | 16.7% | 9.9% |
VI Analysis – Man Wah Intrinsic Value Calculator
The company’s fundamentals reflect its long-term potential, and a simple analysis of these fundamentals can be made using the VI app. According to the VI Line, the intrinsic value of Man Wah‘s shares is around HK$12.0. Currently, the stock is trading at HK$7.6, meaning that it is undervalued by 37%. Man Wah’s financials have been relatively consistent over time, with its revenue and profits growing steadily each year. The company currently has a good balance sheet and solid cash flow position. In terms of management, Man Wah has a strong leadership team with extensive experience in the furniture industry. The company has also been investing heavily in research and development to increase its product offerings and create new opportunities for growth. Additionally, the company has been making strides in digitalization, focusing on new technologies to improve efficiency and customer experience. Overall, Man Wah Holdings Ltd has a lot of potential for long-term growth and investors should take note of the stock’s current undervaluation. With its solid fundamentals and experienced management team, it is well-positioned to benefit from future growth opportunities in the furniture industry. More…
VI Peers
The competition between Man Wah Holdings Ltd and its competitors, Pacific Legend Group Ltd, Samson Holding Ltd, and E Lighting Group Holdings Ltd, is fierce and intense. All four companies are striving to gain a competitive advantage in the market while continuing to provide superior products and services to their customers. With the markets changing rapidly, each company is exploring new strategies to stay ahead of the competition.
– Pacific Legend Group Ltd ($SEHK:08547)
Pacific Legend Group Ltd is a leading apparel and accessories company based in Hong Kong. The company designs, manufactures and distributes apparel and accessories for men, women, and children. It has a market cap of 84.48M as of 2022, which indicates the size and value of the company’s total shares. Pacific Legend Group Ltd has a Return on Equity (ROE) of -24.16%, meaning that for every dollar of equity, the company is generating a loss of 24.16 cents. This means that investors have not been receiving returns on their investments in the company and it is having difficulty creating or maintaining profits.
– Samson Holding Ltd ($SEHK:00531)
Samson Holding Ltd is a multinational company based in Hong Kong that specializes in industrial and consumer products. The company’s current market cap is 907.74M as of 2022, which makes it a large-cap stock. Additionally, the company has a Return on Equity of 5.33%, indicating that it is able to generate a good return on investors’ equity. This strong return on equity is a sign of the company’s financial strength and indicates that it is well-positioned to continue growing in the future.
– E Lighting Group Holdings Ltd ($SEHK:08222)
E Lighting Group Holdings Ltd is a Hong Kong-based lighting manufacturing and distribution company. The company specializes in the design and manufacture of interior, exterior and street lighting, as well as providing lighting solutions for commercial and residential customers. With a market cap of 18.94 million as of 2022, E Lighting Group Holdings Ltd is a relatively small player in the lighting industry. However, the company’s Return on Equity (ROE) of 3.6% indicates that the company is operating efficiently, generating more returns relative to its equity base. This suggests that the company is well positioned to continue to grow and gain market share in its field.
Summary
The latest earnings results for MAN WAH for the second quarter of FY2023 reported total revenue of HKD 1.1 billion, an increase of 10.1% year over year.
However, net income was reported to be HKD 9.3 billion, a decrease of 9.0% year over year. Despite the decline in net income, the stock price moved up the same day. For investors looking to invest in MAN WAH, it is important to consider the company’s performance over the past few quarters and years. It is important to analyze the company’s financials, such as revenue and income growth, as well as the quality of its balance sheet.
Additionally, investors should consider the company’s competitive position in the industry and its potential for future growth. Overall, despite the decline in net income, MAN WAH’s total revenue for the second quarter showed year-over-year growth, which is a positive sign for investors. With a closer look at the company’s financials and its competitive position in the industry, investors can get a better understanding of the company’s potential for future growth and decide if it is a good investment opportunity.
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