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Stella International Holdings Ltd
HKEX:1836

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Stella International Holdings Ltd
HKEX:1836
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Price: 15.05 HKD -0.99%
Market Cap: 12.6B HKD

Stella International Holdings Ltd
Investor Relations

In the dynamic world of footwear, Stella International Holdings Ltd. stands as a testament to innovative craftsmanship and efficient global operations. Born out of a commitment to deliver quality and style, the company has grown from humble beginnings into a formidable player in the fashion industry. Headquartered in Hong Kong, Stella International is primarily engaged in the design, development, and manufacturing of footwear. It caters to an array of esteemed international brands, which trust Stella with their high-end lines due to its impeccable standards and adeptness in merging fashion with functionality. The company has established a robust manufacturing network that spans across China, Vietnam, Indonesia, and Bangladesh, allowing it to tap into a wide range of skilled labor while maintaining competitive production costs.

Stella International's business model thrives on its ability to provide both Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM) services. This dual approach enables the firm to offer a comprehensive suite of production solutions, from initial design to the final product. Its impressive client roster reflects its reputation for reliable and premium service, with many luxury and casual footwear brands relying on Stella for their production needs. Beyond mere manufacturing, the company generates revenue through its retail and wholesale channels, taking its proprietary brands directly to consumers. By maintaining rigorous quality control and fostering innovation in design and technology, Stella International continues to secure its place as a key supplier in the global footwear industry, adeptly balancing high volume demands with the intricate specifications of high-end products.

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1836
Hang Seng (Hong Kong)
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Last Earnings Call
Fiscal Period
Q2 2025
Call Date
Aug 21, 2025
AI Summary
Q2 2025

Revenue: Revenue was flat for the first half of 2025, with volumes up 3.8% to 27.5 million pairs, but ASP down 3.2% due to a higher sports product mix.

Margins: Operating profit margin dropped 200 basis points to 10.9%, and gross margin fell to 22% from 25.8%, primarily from efficiency issues and ramp-ups in Indonesia and the Philippines.

Net Profit: Net profit fell 14.6% to $78 million, with net profit margin at 10.1%.

Dividend: Declared a $0.52 interim dividend (71% payout), maintaining the company’s high payout policy and cash return program.

Capacity Expansion: Continued investment in capacity, including new factories in Indonesia and Bangladesh, with plans to add 21–26 million pairs over the next three years.

Outlook: Guidance for 2025 remains unchanged, with moderate volume growth and profit constrained by ongoing efficiency improvements; margin normalization expected by next year.

Customer Mix: Sports segment sales grew 8.2%, now nearly half of manufacturing revenue, while luxury/fashion and casual segments declined.

Cash Position: Net cash balance stands at $291 million, down due to dividend payouts and a $60 million cash return in May.

Key Financials
Revenue
Flat
Volumes
27.5 million pairs
Average Selling Price
Down 3.2%
Operating Profit Margin
10.9%
Gross Margin
22%
Net Profit
$78 million
Net Cash Balance
$291 million
Net Profit Margin
10.1%
Net Cash Flow from Operations
$3.9 million
Interim Dividend
$0.52
Dividend Payout Ratio
71%
CapEx
$33 million
Earnings Call Recording
Other Earnings Calls
2025
2023

Management

Mr. Li-Ming Chen
Executive Chairman of the Board
No Bio Available
Mr. Lo-Jen Chi
CEO & Executive Director
No Bio Available
Mr. Yi-Min Chiang
Executive Director
No Bio Available
Mr. Siu Ming Tam
Chief Financial Officer
No Bio Available
Ms. Siu Yim Kan
Company Secretary
No Bio Available

Contacts

Address
Flat C, 20/F, MG Tower, 133 Hoi Bun Road, Kowloon
Contacts
+85229561339.0
www.stella.com.hk