Thanks to the recovery of domestic demand, Embry Holdings' (1388) net profit jumped 30.6 percent to HK$80.8 million in the first half as revenue rose 13.3 percent to HK$697 million.
Embry Holdings (1388), which makes ladies' undergarments, is launching a cheaper line in bras on expectations that same-store sales will maintain high single-digit growth in the second half.
The firm's shares yesterday surged 17.29 percent to HK$5.36 - the highest in 32 months - following rosy interim results.
In the fourth quarter, Embry will launch a cheaper product line - E-bra - priced at between 80 yuan (HK$91.32) and 120 yuan each compared with 150-180 yuan for the Embry Form brand.
The company plans to invest up to HK$300 million this year to expand its distribution network.
"We will set up more than 60 distribution points in first-tier to third-tier cities in the second half," said chief executive Liza Cheng Pik-ho.
Embry had 1,712 distribution points as of June 30.
Higher prices for cotton did not have a significant effect on Embry because its main raw materials are fiber and lace, said executive director Hung Hin-kit. "The gross margin is expected to hover between 75 and 80 percent," said chief financial officer Katie Fung Kam-lai.
Thanks to the recovery of domestic demand, the company's net profit jumped 30.6 percent to HK$80.8 million in the first half as revenue rose 13.3 percent to HK$697 million.
Earnings per share were 20.04 HK cents. The company declared an interim dividend of 3 HK cents.
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