Shares of Giordano International (0709) jumped 9.52 percent after the company said it may have more than doubled its interim net profit to HK$200 million.
The retailer yesterday said it expects net profit attributable to shareholders for the first half of this year will be between HK$170 million and HK$200 million, compared with a net profit of HK$97 million for the same period in 2022, an increase of between 75 percent and 106 percent.
The surge in profit for the period was mainly due to improved sales, higher gross margins and controlled operating expenses, as the group's three main markets, Greater China, Southeast Asia and the Gulf Cooperation Council, saw sales and profit growth, according to the company.
Interim results are expected to be announced in early August 2023.
If the net profit growth attributable to shareholders of the company in the second half of the year maintains the momentum, it will be able to manage its dividend payout and even increase it, investors said, citing the company's previous dividend payout approaches.
Additionally, even if the dividend is overpaid, the market has high confidence in Giordano's payouts because it had HK$960 million cash in hand at the end of last year. Although this slightly decreased from the previous year's HK$1.04 billion, it is still abundant, market watchers said.
