Investment Summary
Vitasoy International (00345.HK) reported revenue of HKD 3.443 billion for 1H2025FY,
representing a year-on-year (YoY) growth of 2%. While overall topline growth remained
modest, gross margin expanded significantly to 51.6% (1H2024FY: 50.5%), reflecting the
positive impact of lower raw material costs and production process optimization. Operating
profit surged by 50% to HKD 257 million, primarily driven by strong performances in
Mainland China and Hong Kong. In Mainland China, the company leveraged an optimized
online and offline sales mix and improved production efficiency, leading to a 15% increase in
operating profit, with an operating margin of 11%. The Hong Kong segment also delivered
robust results, with operating profit rising by 44%, supported by revenue growth and lower
raw material costs. Meanwhile, the Australia and New Zealand markets resumed revenue
growth as production issues were resolved, while the Singapore market saw increased
revenue from its tofu business, leading to a significant narrowing of operating losses.
Earnings per share (EPS) stood at HKD 0.159, reflecting a YoY increase of 4.6%. The company
declared an interim dividend of HKD 0.04 per share, marking an impressive 186% YoY
increase. This underscores management’s confidence in the company’s stable cash flow
outlook and its commitment to maintaining a consistent shareholder return policy.
Revenue Growth and Margin Expansion Enhance Profitability
For the six months ended September 30, 2024, Vitasoy recorded revenue of HKD 3.443
billion, up 2% YoY. The Mainland China segment remained broadly flat at HKD 1.958 billion,
reflecting intensified market competition. Notably, the decline in online sales exerted
pressure on overall growth, attributed to increased competition on e-commerce platforms
and evolving consumer purchasing behavior. However, through product portfolio
optimization and enhanced production efficiency, the Mainland China segment achieved an
operating profit of HKD 218 million, up 15% YoY, with an operating margin improvement to
11%.
The Hong Kong market remained resilient, with revenue increasing by 3% YoY to HKD 1.156
billion, driven by strong brand equity, broad market influence, and product innovation.
Demand for new offerings, such as Vitasoy Banana Soy Milk, Vitasoy Strawberry Soy Milk,
Vita 0 Sugar Lemon Tea, and Vita 0 Sugar Sparkling Lemon Tea, was robust, boosting sales
volume. Operating profit in Hong Kong surged by 44% YoY to HKD 159 million, with an
operating margin improvement to 14%. This strong performance was underpinned by core
product sales growth and the tailwind from lower raw material costs. Additionally, increased
demand from export markets provided incremental revenue support.
The Australia and New Zealand segment resumed revenue growth, rising 7% YoY to HKD 273
million. However, the business still recorded an operating loss of HKD 45.51 million, with the
loss widening compared to the prior period. This was primarily due to operational
disruptions in the first half, though management has successfully resolved the issues and
restored production capacity. A return to profitability is anticipated in the second half.
The Singapore segment recorded revenue growth of 6% YoY to HKD 55.85 million, primarily
driven by strong tofu export demand. Despite ongoing challenges in the beverage business,
operating losses narrowed significantly to HKD 2.10 million, reflecting increased tofu
revenue and improved cost control measures. Nevertheless, further strengthening of
distribution channels will be required to restore overall profitability in this segment.
Benefiting from lower raw material costs and production process optimization, the group’s
gross margin expanded to 51.6%, marking a 1.1 percentage point improvement YoY. This
highlights Vitasoy’s strong cost management capabilities.
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李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.