Man Wah sits easy as profit bounces

Nancy Fei

Sofa maker Man Wah (1999) said net profit jumped 20.2 percent to HK$2.3 billion for the year ended March and that it is raising its final dividend by 50 percent to 15 HK cents.

Revenue rose 3.8 percent to HK$18.8 billion, and gross margin increased 0.9 percentage points to 39.4 percent.

Its principal business advanced 6.1 percent yearly to HK$18.4 billion, with over 65 percent of revenue coming from the mainland market, which contributed HK$11.9 billion for an 8.1-percent increase.

An overseas demand recovery is evident, particularly with double-digit revenue growth since the second fiscal half.

Man Wah said it recognized significant growth opportunities behind the mainland property market downturn cycle as the decrease in the number of new homes and in demand for home purchases will shift demand toward home furnishings.

It is estimated that 700-800 new offline stores will be opened in the mainland this year, mainly concentrated in cities that boast a higher level of economic development.