Regina Miracle (02199) pointed out that the orders in 4QFY24 have significantly rebounded, and it is expected that the income in FY25 will have a double-digit growth.
According to the research report released by CICC on Futu Financial App, the investment rating for Regina Miracle (02199) is maintained at "outperform", considering that the Bonding apparel business is still in an investment period, the profit forecast for FY25 is reduced by 47.5% to HKD 200 million, and the estimated target price of FY26 profit is HKD 310 million, with an expected target price of HKD 3.
The report stated that the company's revenue for FY24 was HKD 7.02 billion, a decrease of 10.9% year-on-year; net income attributable to owners of the parent company was HKD 140 million, down 62.6% year-on-year. Among them, the revenue for 2HFY24 increased by 6.3% year-on-year to HKD 3.47 billion, and the net income attributable to owners of the parent company decreased by 48.2% year-on-year to HKD 36 million. The company's performance was lower than the bank's previous expectations, mainly due to lower-than-expected gross margin recovery.
As the brand has started the inventory replenishment process, the company stated at the earnings conference that orders in 4QFY24 have significantly rebounded, and it is expected that the income in FY25 will have a double-digit growth. Considering a one-time restructuring fee, net profit is expected to increase by a high double-digit rate. In addition, the company plans to continue to strengthen its two main businesses, anchor its positioning of high-end products, enlarge the scale effect, control capital expenditures, and gradually repay debt to reduce financial costs. The bank believes that the company's development strategy is clear and has certain profit elasticity in the medium and long term.