Pou Sheng International (3813) Q4 2024 earnings summary

Executive summary

• FY24 revenue declined 8.0% YoY to RMB 18,454mn, with profit attributable to owners stable at RMB 491.5mn, up 0.2% YoY.

• Gross profit margin improved by 0.5pp YoY to 34.2%, and operating profit margin rose to 3.8%.

• Online and omni-channel sales contributed 28% of total sales, up 16% YoY, with Douyin livestreaming a key driver.

• Directly operated stores decreased 2.1% YoY to 3,448, reflecting ongoing network optimization.

• Final and special dividends of HKD 0.02 per share, annual dividend HKD 0.06 per share, 60% payout ratio.

Financial highlights

• Revenue: RMB 18,454mn (-8.0% YoY); Gross profit: RMB 6,309mn (-6.6% YoY); Operating profit: RMB 709mn (-3.7% YoY).

• Net profit margin increased to 2.7% from 2.5% YoY; profit attributable to owners: RMB 491.5mn (up 0.2% YoY).

• EBITDA: RMB 1,850.2mn (-7.7% YoY); Net cash: RMB 2,664.1mn (-6.0% YoY).

• Free cash flow of RMB 813.2mn; solid cash position at year-end.

• SG&A expenses decreased 7.1% YoY, with staff numbers reduced by 10%.

Outlook and guidance

• Focus on profitability, cost competitiveness, and shareholder returns in coming years.

• Digital transformation and omni-channel integration to maintain digital sales >25%.

• Plans to expand omni-channel and B&M footprint, launch new store concepts, and strengthen digital transformation.

• Expects sports industry growth in China, supported by major sporting events and government initiatives.

• Will broaden product categories, expand mono-brand stores, and enhance online and offline integration.