Vinda International (03331) The costs pressure is significant, sales performance remains resilience March 10, 2023 268

PSR Recommendation: SELL Status: Initiation
Target Price: HKD14.10

Vinda is a leading hygiene company in Asia, with core business segments including tissue,
incontinence care, feminine care, baby care and professional hygiene solution under key
brands Vinda, Tempo, Tork, TENA, Dr. P, Libresse, Libero and Drypers.
The cost of raw material rises and fx fluctuations, the profit margin is under pressure
FY2022, total revenue increased by 4.0% (growth at constant exchange rates: 8.1%) to
HK$19,418 million. Net profit declined by 56.9% to HK$706 million while the net profit
margin dipped by 5.2ppts from the previous year to 3.6%. Basic earnings per share was 58.7
HK cents (FY2021: 136.5 HK cents), with a final dividend of 30 HK cents per share. Together
with the interim dividend, the total dividend per share for the Year will be 40 HK cents
(FY2021: 50HK cents).
In 4Q2022, the quarterly revenue was HK$5,364 million, a decrease of 2.2% YoY (growth at
constant exchange rates: 6.4%); the net profit was HK$19 million, a decrease of 95.2% YoY,
mainly affected by Covid-19 and continuous rise of material costs.
The company’s profit margin was negatively impacted by continuous rise of material costs
and currency fluctuation. FY2022, gross profit was down by 16.9% to HK$5,483 million, while
gross profit margin down by 7.1 ppts to 28.2%. EBITDA was down by 36.1% to HK$2,104
million and the EBITDA margin declined by 6.8 ppts to 10.8%, due to lower gross margin in
the year. Total foreign exchange loss amounted to HK$65.2 million (FY2021: HK$27.5 million
gain). However, total sales & administrative costs as a percentage of revenue edged down
by 0.4 ppt to 24.5%.

About the author

Profile photo of Eric Li

Eric Li

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.

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