Justin Allen Holdings Limited reported unaudited interim results for the six months ended 30 June 2026, highlighted by top-line expansion, higher gross profitability and continued geographic diversification of production.
Revenue climbed 9.40% year on year to HK$396.24 million, driven mainly by loungewear and sleepwear shipments. Gross profit rose 14.74% to HK$109.43 million, lifting the gross margin by 1.3 percentage points to 27.6% as a more favourable product mix offset cost pressures, particularly in Central America.
Selling and distribution expenses increased 39.28% to HK$29.41 million, reflecting higher logistics and personnel costs, while administrative expenses fell 5.00% to HK$38.39 million following tighter cost control. Finance costs declined 21.70% to HK$5.46 million, aided by lower benchmark interest rates.
Profit before tax advanced 16.56% to HK$40.92 million. After a 76.7% rise in income-tax expense to HK$8.29 million, profit attributable to shareholders improved 7.40% to HK$32.71 million. Basic and diluted earnings per share were 2.62 HK cents, up from 2.44 HK cents a year earlier. No interim dividend was declared.
The United States remained the largest market, contributing HK$209.62 million, although down 6.2% year on year and equal to 52.9% of total revenue. Ireland, the United Kingdom and Canada posted double-digit growth, partially offsetting U.S. softness. Two customers accounted for 93.5% of group sales.
Inventory nearly doubled to HK$272.47 million, linked to year-end sales preparations and new facility ramp-ups, trimming the current ratio to 3.8 from 5.5. Cash and bank balances stood at HK$233.92 million, supplemented by HK$83.47 million of new short-term borrowings. Net assets increased 4.02% to HK$976.59 million.
Capital expenditure lifted property, plant and equipment to HK$163.67 million, reflecting commissioning of a second Cambodian plant and trial operations at the inaugural Kenyan facility. Non-current assets in Kenya expanded to HK$38.21 million, underscoring the group’s strategy to build an East African production hub. Construction of a 2 million-unit-per-month factory in Vietnam is progressing toward trial production by late 2026 or early 2027.
Financial investments were streamlined: financial assets at fair value through other comprehensive income fell to HK$26.19 million, while financial assets at fair value through profit or loss stood at HK$363.55 million after modest mark-to-market gains.
Looking ahead, management cites a cautious global outlook amid high interest rates and geopolitical uncertainty but targets further penetration in Europe and emerging Asian markets. Recruitment of senior talent, expansion of ODM capabilities and continued build-out of a diversified manufacturing footprint are positioned as key levers for growth and risk mitigation in the second half of 2026.