Wah Sun Handbags International Holdings Limited issued a positive profit alert, projecting net profit attributable to owners of no less than HK$84.00 million for the fiscal year ended 31 March 2026, up from HK$64.00 million a year earlier. The anticipated increase represents an improvement of approximately 31.25%.

Revenue is expected to expand by about 17%, climbing to roughly HK$850.00 million from HK$724.00 million in the prior year. Management attributes the top-line growth to sustained orders from new customers and stronger European sales, particularly in the Netherlands.

Higher sales volumes and stringent cost-control measures are set to lift both gross profit and gross margin. Nevertheless, part of the profit gain will be offset by:

1. Rising administrative expenses, mainly employee benefits aligned with increased sales activity; 2. Reduced foreign-exchange gains amid Renminbi depreciation against the Hong Kong dollar; 3. Higher provisions for impairment of trade receivables in line with larger receivable balances, compared with a reversal of provisions in the previous year; 4. Increased income-tax expenses due to higher assessable profit.

The figures are based on unaudited management accounts. Final audited results are scheduled for release by end-June 2026. Investors are advised to exercise caution when dealing in the company’s shares.