On Friday, Goldman Sachs (NYSE:GS) adjusted its stance on Man Wah Holdings Limited (1999:HK) (OTC: MAWHF) stock, raising the price target to HK$5.30 from HK$5.10, while maintaining a Sell rating.
The adjustment came after the company reported its financial results for the fiscal year 2024 on May 16, which showcased a performance slightly above the firm's expectations.
The Hong Kong-based furniture manufacturer disclosed annual revenues of HK$18,411 million and a net profit of HK$2,302 million for the fiscal year ended 2024.
These figures represent a year-over-year increase of 6% and 20% respectively. According to the analyst, these results were 0.4% higher in revenue and 2.8% higher in net profit compared to Goldman Sachs estimates (GSe).
For the second half of the fiscal year 2024, Man Wah's revenue and net profit were HK$9,474 million and HK$1,162 million, respectively. This indicates significant growth of 18% in revenue and 41% in net profit year-over-year. The reported figures for this period were also higher than Goldman Sachs's expectations, surpassing them by 0.8% in revenue and 5.2% in net profit.
The analyst noted that overall revenue for Man Wah rebounded to positive growth and was largely in line with expectations for the second half of the fiscal year. This was a notable recovery from a 4% year-over-year decline experienced in the first half.
However, domestic revenue, which constitutes 65% of the total, grew by 10% year-over-year in the second half. This was slightly below Goldman Sachs's forecast, which had anticipated an 11% growth. The shortfall was attributed to continued soft demand in both domestic and international markets.
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