Nameson Holdings (SEHK:1982) Margins Strengthen, Supporting Cautious Bull Cases Despite Slower Earnings Growth

Nameson Holdings (SEHK:1982) has just posted its H1 2026 numbers, with revenue of HK$2.8 billion and net income of HK$336 million translating to basic EPS of HK$0.15. Looking back, the company has kept revenue broadly around the HK$2.8 billion mark over the past two first halves. Net income moved from HK$298 million (EPS of HK$0.13) in H1 2025 to HK$336 million (EPS of HK$0.15) this time, and the trailing twelve month EPS of HK$0.17 and net income of HK$380 million frame these results within a steady profitability profile. With net profit margins edging higher over the last year, investors will be weighing whether the latest set of figures supports a more durable earnings story.

See our full analysis for Nameson Holdings.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the dominant stories around Nameson Holdings, highlighting where the hard data backs the narrative and where it pushes back.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Nudge Up To 8.6 Percent

• Trailing net profit margin sits at 8.6 percent, a touch above the 8.4 percent level reported a year earlier, while trailing net income is HK$380.1 million on HK$4.4 billion of revenue.
• What stands out for a generally cautious view on textile makers is that profitability has inched higher even as trailing earnings growth slowed to 2.5 percent from a 10.7 percent five year pace. This suggests the business has kept a reasonably steady margin base rather than seeing it compress sharply.
  • The latest H1 2026 half shows net income of HK$336.0 million on HK$2.8 billion of revenue, broadly in line with the trailing margin profile investors have seen over the last twelve months.
  • Across the last three trailing snapshots, revenue has hovered around HK$4.4 billion and net income around HK$370 million to HK$380 million, so the small margin lift is occurring on a fairly stable sales base rather than a one off spike.

Low 6.4x P E Versus Peers

• The trailing price to earnings ratio of 6.4 times at a HK$1.07 share price sits well below the Hong Kong market at 12.2 times, the Luxury industry at 10.3 times, and a 28.5 times peer average.
• General value focused thinking would argue that this discount multiple, combined with multi year earnings growth of 10.7 percent per year and positive trailing net income of HK$380.1 million, heavily supports a more constructive stance on the stock even though recent growth has cooled to 2.5 percent over the last year.
  • On a trailing revenue base of roughly HK$4.4 billion and an 8.6 percent margin, the earnings being capitalized at 6.4 times do not look like a collapsing profit stream in the raw numbers.
  • The fact that the latest H1 2026 EPS of about HK$0.15 is not far from the trailing EPS of HK$0.17 reinforces the idea that the low multiple is not simply reacting to a sudden drop in per share profitability.

On these numbers, some investors might wonder why a business with stable margins and a 6.4 times P E trades at such a discount and look for a deeper dive into how the market narrative explains that gap. 📊 Read the full Nameson Holdings Consensus Narrative.

Big Yield But Weak Cash Cover

• The stock offers a 10.56 percent dividend yield, yet that payout is flagged as not being well covered by free cash flow over the last twelve months.
• Critics highlight that while net income has grown 10.7 percent per year over five years and still reached HK$380.1 million on a trailing basis, the combination of a double digit yield and only 2.5 percent earnings growth in the most recent year creates a clear tension between the desire for income today and the cash needed to support that level of dividends.
  • The reported DCF fair value of HK$0.29 versus the HK$1.07 share price also shows that, on this model, the stock is trading well above the cash flow based estimate even as shareholders collect a high yield.
  • With margins only modestly higher at 8.6 percent and trailing revenue basically flat around HK$4.4 billion, the numbers do not point to a surge in operating cash that would obviously back such a generous distribution.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Nameson Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Nameson Holdings combines a low valuation with steady margins, but its double digit yield and weak cash coverage raise clear questions about dividend sustainability.

If you want income backed by stronger fundamentals, use our these 1891 dividend stocks with yields > 3% today to hunt for yield opportunities with healthier payout coverage and fewer cash flow red flags.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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