Orders Increase And Vietnam Factory Sales Increase, Virginia Again Positive Earnings Warning

Jeanne, the underwear manufacturer, today issued a positive earnings forecast. It is expected that this year's profits will increase significantly as compared with HK $97 million 635 thousand in the previous fiscal year as of March 31st.

The group explained that the reason for the substantial increase in the consolidated profit margin was the increase in customer orders and the continuous improvement in the efficiency of Vietnam's factories.

Since its listing in October 2015, Virginia has released six semi annual or annual results, and each time it will start with a profit warning. Up to now, 4 of the 6 profit policemen are positive, and today's surplus is second consecutive rounds in the current fiscal year.

In the first half of fiscal year ending September 2017, Virginia realized a net profit of HK $95 million 615 thousand, an increase of 311.4% over the previous year's HK $23 million 244 thousand.

Net profit margin and gross margin increased by 230 basis points and 200 basis points respectively.

Revenue rose 30.9% to HK $2 billion 813 million 500 thousand.

The group has issued two surplus policemen in fiscal year 2017 in the year of fiscal year two, due to the weak sale of Vitoria's secret sales of its main customers L Brands Inc. (Victoria) s Secret.

In the first half of the fiscal year, Virginia, which actively recruits new customers to rely on a single brand, has been able to see the results. Customers from the United States, Europe, Hongkong, the mainland and Japan have seen strong growth.

The founder, chairman and chief executive of Virginia Hung Hung Yi revealed that the secret of Victoria 's Secret Vitoria still accounted for more than 30% of the group's revenue.

At the media luncheon at the beginning of the year, he said that the final phase of the Vietnam workshop, the fourth phase, will be completed by the end of 2018, completed in early 2019, and the capacity and sales volume of the first two plants will be improved.

Ou Huiting, director of investor relations, expects that the overall profit margin of the group will be further improved after the four factories in Vietnam are fully put into operation.

2199.HK dropped 21 to HK $6.18 on the 2.83% day, and has fallen 19.7% since 2018.