Hong Kong's Stella International H1 profit hit by costs

Stella International Holdings

20/08/2026 10:30

Overview
Hong Kong footwear and handbag maker's H1 revenue rose 1.5% yr/yr to $786.7 mln
Net profit attributable fell to $64 mln from $78.6 mln a year earlier
Profitability impacted by higher costs and investment in new factories

Outlook
Company says committed to return up to $60 mln to shareholders in 2026 through buybacks and dividends
Stella expects to commission and ramp up three new factories in Indonesia, Vietnam and Bangladesh in 2026
Company to begin phased shutdown of Philippines footwear factory from July 2026

Result Drivers
HIGHER COSTS - Co said increased raw material, labor and training costs for new factories reduced gross profit and margin
FACTORY INVESTMENT - Co said higher R&D, management and infrastructure costs from commissioning new factories weighed on operating profit
PHILIPPINES SHUTDOWN COSTS - Severance payments and costs from phased shutdown of Philippines footwear factory impacted profitability

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Net Income Attributable
 
$64 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
Wall Street's median 12-month price target for Stella International Holdings Ltd is HK$14.20, about 0.4% above its August 20 closing price of HK$14.15
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 19 - Crystal International H1 revenue rises; raises dividend
Aug 18 - China's 361 Degrees International interim revenue rises 8%
Aug 20 - China's top drugmaker Hengrui sees profit growth squeezed by bulk-buying programs

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-20/0583a41d-c391-4938-b6e8-4a62b4af9695.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)