Man Wah

Man Wah

Postby millionairemind » Thu Nov 13, 2008 4:16 pm

"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: Man Wah

Postby millionairemind » Thu Feb 12, 2009 7:36 am

Published February 12, 2009

Higher US, Europe sales boost Man Wah's Q3 earnings

Q3 net profit up 14.7%; 9-month net income rises 28%
By JAMIE LEE

SOFA retailer Man Wah Holdings posted a 14.7 per cent jump in quarterly net profit despite weakening economic conditions, thanks to higher sales in the United States and Europe.

The company made a net profit of HK$56.2 million (S$10.9 million) for the third quarter ended Dec 31, 2008, compared with HK$49 million in the same period a year ago. Earnings per share stood at 8.43 Hong Kong cents.

Sales jumped 29.9 per cent to HK$522 million from HK$402 million a year ago.

With the exception of Hong Kong, revenue from all other market segments - including North America, Europe and China - registered higher growth.

Its top market segment, North America, maintained its lead with sales growing by 31.6 per cent to HK$230 million.

This was after the company pushed out more products at higher selling prices to the bigger furniture retailers in the region compared with sales posted in the Oct-Dec period a year ago.

Finance director Francis Lee told BT that the company had raised its selling prices for all products, but declined to say how much the increase was. He added that the company is now 'adjusting prices' so as to garner more demand against the weak consumer sentiment.

The European market saw the fastest growth for the quarter, rising by 65.4 per cent to HK$110.3 million, which the company said was due to a few new buyers.

These new buyers are not listed players but come from places such as the United Kingdom, Spain and Ireland, said Mr Lee

While there has been no set commitment from these buyers, the purchases are not one-off, he added.

Sales in Hong Kong fell 22.3 per cent to HK$29.2 million as 'the economic condition in the Hong Kong market changed dramatically for the worst', the company said.

'Business is definitely tough these days and orders are not as easy to come by as in a year ago,' said Mr Lee. 'But we are still seeing orders from existing and new buyers,' he added.

'Our inventory planning is still the same in that we tend to build up 2 to 3 months of inventory to cater for the demand both on hand and forthcoming.'

Man Wah said it has adopted a cautious outlook for its business in the next 12 months.

For the nine-month period, the company posted a 28 per cent increase in net profit to HK$174 million from HK$136 million the same period a year ago.

Revenue surged 36.7 per cent to HK$1.49 billion compared with HK$1.09 billion.

The total amount of cash it has stands at HK$125 million, nearly doubled from HK$65.5 million registered a year ago.

Shares of Man Wah closed unchanged at 15 cents yesterday. The stock has fallen 9 per cent since the start of the year.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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