Pacific Textiles (1382) H2 25/26 earnings summary

Executive summary

• Revenue decreased by 0.9% year-over-year to HK$5,014.0 million, mainly due to a 5.9% drop in sales volume, partially offset by a 5.2% increase in average sales price.

• Profit attributable to equity holders fell 50.5% to HK$82.9 million, impacted by US tariff surges, lower associate profits, and a significant exchange loss from RMB appreciation.

• Gross profit margin remained stable at 7.4% (2025: 7.6%), reflecting resilience in core business fundamentals.

• The Group maintained a net debt position of HK$793.6 million, up from HK$679.8 million, mainly due to increased inventories.

Financial highlights

• Revenue: HK$5,014.0 million (down 0.9% year-over-year).

• Gross profit: HK$372.1 million (down from HK$384.0 million); gross margin 7.4%.

• EBITDA: HK$376.7 million (down from HK$473.4 million); EBITDA margin 7.5%.

• Net profit: HK$87.5 million (down from HK$159.4 million); net margin 1.7%.

• Basic and diluted EPS: HK$0.06 (down from HK$0.12).

• Final dividend proposed: HK$0.02 per share (2025: HK$0.05); interim dividend paid: HK$0.05 per share.

Outlook and guidance

• Despite profit decline, sales performance and gross profit remained stable, showing core business resilience.

• Expansion of Vietnam operations is a strategic priority, with the second phase expected to boost capacity and sales by end-2027.

• Focus on developing innovative synthetic fabrics and strengthening customer relationships.