来自针织品产品的混合信号
Nameson|01982.HK
COMPANY NOTE
Mixed signals from the knitwear products
H F NGO, Brian, CFA
SENIOR ANALYSTbrianngo@westbullsec.com.hk+8523896 29652701–2703,27/F, Infinitus Plaza, 199 Des Voeux RdCentral, Sheung Wan, HK
STOCK RATING
NR
Thetotal revenue of Nameson(01982.HK)in 2023/24 1HslashedYoY 12.0%toHKD 2,726.4mn, and theadjusted net profit dropped YoY 15.7% to HKD 289.1mn, bringing the adjusted net profit margin to 10.6%.
Impossible triangle:Nameson (01982.HK) announced a HKD 0.095 dividend per share, amounting to a74.8% payout ratio.We areastonishedabout the dividend declared and the payout ratio, we do believethat is a catalyst supporting the stock price in theshort term. However,it is challenging for the Group tosimultaneously maintain a low gearing ratio, high dividend payout ratio and aggressive expansion. Thecurrent interest-bearing debts and the cash on hand reached HKD 664.5mn and HKD 1,120.7mnrespectively as at the end of Sep 2023, in consideration of HKD 300mn–HKD 400mn CAPEX (for Vietnamfactory, fabric and cashmere business etc.)andthe current dividend payout,we expect that the gearingratio will remain relatively flat and the dividend payout ratio of 2023/24 2H will be lower than 1H.
Stock RatingNRTarget PriceHK$-Current PriceHK$ 0.6152-Week RangeHK$ 0.375–0.650Market cap. (HKD, bn)HK$1.4
Mixedsignals from the knitwear products:Knitwear products remained the primary contributor toNameson (01982.HK), the sales volume slightly increased YoY 1.6% to 19.0mn pieces, of which the salesvolume of wholegarment products increased YoY 17.6%.However, theYoY 12.9% decline in ASP offset anincrease in sales volume,it was a result of theadjustmentof the sales price of wholegarment and thedecline in sales of cashmere products.It is positive to hear thatthe potential orders fromalmostallcustomers show a rebound in the 2023/24 2H, leading to single-digit growth in the sales volume guidancethat is more optimistic than before.However,the ASP of the knitwear products, especially wholegarment,is expected to remain at a lower level due toa lower raw material price, limiting the growth in the top-line and bottom-line.Besides, we believe that the gross margin will not increase furtherbut reverse to anormal leveldue to an appreciation of RMB against USD.
Be prepared forthefuture:in response to the weakmarket condition,Nameson (01982.HK)tries to strikea balance betweencash reservation andbusiness expansion.Iti)plans toincrease theknitwearproductioncapacityby 5mn pcs in Vietnamin responsetothe demandforproducts produced outside China,ii)furtherbetson the fabric businessthatmay bring a bettergrowth potential to the Group,and iii)limits itsCAPEXto
