On July 16, Vinda International (03331.HK) released first-half results. For the six months ended 30 June 2021, Vinda International generated revenue of HK $9.085 billion, up 19% from the same period last year. Net profit of HK $967 million, an increase of 6%; Gross profit increased 15.4% to $3,394 million and gross profit margin was 37.4%; Underlying earnings per share rose 5.6% to HK $80.6; An interim dividend of HK $10.0 per share has been declared.

The tissue division and the personal care division accounted for 83 percent and 17 percent of total revenue, respectively, the data showed. Revenue from the paper towels division increased 20.3% to HK $7.509 billion, or 11.7% on a constant exchange rate basis. Gross margin for the paper towels division was 37.8%. Revenue for the Personal Care segment increased 13.3%, or 7.9% at constant exchange rates, to HK $1.576 billion. Gross margin for the Personal Care segment was 35.3%. "The premium market provides opportunities for the Group to expand, with the premium product portfolio steadily increasing to more than 28 per cent of total sales," Vader said in a statement.

From the perspective of channels, the revenue from traditional distributors, key customer supermarkets and commercial cleaning and hygiene customer channels accounted for 27%, 24% and 11% of the total revenue respectively. Notably, e-commerce accounted for 38% of Vader's revenue in the first half of the year. In the announcement, Vader said that changing consumption habits as a result of the epidemic have made e-commerce a popular channel, which recorded a natural growth of 26 per cent.

In terms of capacity allocation, according to the announcement data, as of June 30, 2021, Vinda Paper's designed annual production capacity reached 1,250, 000 tons, South China and North China wet towel production facilities have been completed and put into production, South China, East China and Central China paper production capacity expansion plans continue to advance, expected to be completed within 2021. The regional headquarters in Malaysia is expected to be completed in early 2022, and the production facilities and innovation center will be phased in as planned, with completion expected in 2022. The new capacity will drive efficiency improvements and facilitate market expansion.

In the second half of this year, the price fluctuations of raw materials, consumer market changes and increased competition and other factors, Vinda said in a statement that the future will be closely related to the change of consumption habits and channel changes to drive business growth. "For example, the current public concern about the aging of the population provides a good opportunity for the incontinence care division." In addition, Vinda believes its Libresse Vir brand of sanitary napkins has successfully gained consumer attention and could be an important engine of growth for the company's personal care business.

"Looking ahead, the global epidemic is gradually improving and the economic recovery is expected to continue in the second half of 2021." "We will continue to stay close to the market, focus on product innovation, and improve brand competitiveness and profit margins by optimizing our product portfolio," said Kit Lee, Vinda's chief executive.