--- title: "Truly International Holdings (SEHK:732) Thin 1.7% Margin Reinforces Bearish Earnings Narrative" type: "News" locale: "en" url: "https://longbridge.com/en/news/280801521.md" description: "Truly International Holdings (SEHK:732) reported FY 2025 H1 revenue of HK$8.1b and basic EPS of HK$0.0449, maintaining a trailing net profit margin of 1.7%. Despite a revenue decline from HK$9.3b to HK$8.1b, the company remains profitable, though concerns arise from a 33.5% annual earnings decline over five years. The stock trades at a trailing P/E of 10.1x, below industry averages, with a DCF fair value of HK$1.05. Investors face mixed signals regarding earnings quality, margins, and valuation risks, prompting a cautious outlook." datetime: "2026-03-27T13:35:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280801521.md) - [en](https://longbridge.com/en/news/280801521.md) - [zh-HK](https://longbridge.com/zh-HK/news/280801521.md) --- # Truly International Holdings (SEHK:732) Thin 1.7% Margin Reinforces Bearish Earnings Narrative Truly International Holdings (SEHK:732) has reported FY 2025 first half revenue of HK$8.1b and basic EPS of HK$0.0449, setting the tone for a year in which investors are watching how earnings quality holds up against thin margins. The company has seen revenue move from HK$8.6b in the first half of FY 2024 to HK$9.3b in the second half and then to HK$8.1b in the latest period. Basic EPS shifted from HK$0.0551 to HK$0.0405 and now HK$0.0449, giving a clear view of how the top line and EPS have tracked across recent halves. With a trailing net profit margin of 1.7%, unchanged from last year, the focus this season is on how much earnings resilience Truly can generate from a tight margin base. See our full analysis for Truly International Holdings. With the headline numbers on the table, the next step is to see how these results line up against the main narratives around Truly International Holdings, highlighting where the data supports prevailing views and where it pushes investors to reassess the story. Curious how numbers become stories that shape markets? Explore Community Narratives ## TTM EPS Drift vs Five Year Earnings Slide - On a trailing basis, basic EPS is HK$0.0893, compared with HK$0.0956 in the prior trailing window, while the latest half year printed HK$0.0449 of EPS. - Bears focus on the 33.5% per year earnings decline over the past five years, and these EPS figures line up with that concern: - The trailing net income of HK$274.2 million, compared with HK$302.1 million in the earlier trailing period, shows that profit pressure has persisted beyond a single half. - With trailing net profit margin sitting at 1.7% for both the latest and prior year, critics highlight that profitability has not widened enough to counter the multi year earnings slide. ## 1.7% Margin Points To Thin Cushion - The company generated trailing twelve month revenue of HK$16.5b and net income of HK$274.2 million, which translates to a 1.7% net profit margin unchanged from the prior year. - What stands out for a more bullish view is that the business is still profitable at this margin level. However, that sits uncomfortably alongside key risks: - Revenue over the last three reported halves ranged between HK$8.1b and HK$9.3b, while net income moved between HK$127.9 million and HK$174.2 million, illustrating that even with multi billion revenue, profits stay relatively small in dollar terms. - Risk analysis also flags that interest payments are not well covered by earnings, so with only 1.7% of revenue dropping to the bottom line, bulls need to factor in how limited that buffer is for servicing debt costs. ## P/E Of 10.1x Against Peer Averages - The stock trades on a trailing P/E of 10.1x at a share price of HK$0.93, compared with 11.7x for the Hong Kong electronic industry and 20.5x for peers, while the DCF fair value is HK$1.05. - Supporters highlighting valuation appeal get some backing from these numbers, but there is an important tension to keep in mind: - The market price is about 11.6% below the DCF fair value of HK$1.05, yet that discount sits alongside a 33.5% annual earnings decline over five years, which helps explain why the multiple is also below peer and industry averages. - With the dividend track record described as unstable and interest coverage flagged as weak, investors weighing the 10.1x P/E and apparent DCF discount are effectively trading valuation support against several identified financial risks. If you want to see how other investors are connecting these earnings trends, margin pressures, and valuation signals into a bigger picture for the stock, it is worth checking the broader discussion around the company through Curious how numbers become stories that shape markets? Explore Community Narratives. ## 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 Truly International 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. The mixed signals around earnings, margins and valuation mean opinions are naturally split. It makes sense to look through the data yourself and decide where you stand. To weigh those concerns and potential bright spots side by side, take a closer look at the 1 key reward and 3 important warning signs. ## See What Else Is Out There Truly International Holdings is working with thin 1.7% margins, an earnings slide over five years, and risk flags around interest coverage and dividend stability. If those pressure points make you cautious, it is worth balancing your watchlist with companies that score well for resilience by checking the 284 resilient stocks with low risk scores today. _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._ ### Related Stocks - [00732.HK](https://longbridge.com/en/quote/00732.HK.md) ## Related News & Research - [Truly International Reports HK$1.19 Billion Turnover for January 2026](https://longbridge.com/en/news/274942979.md) - [HKBN (SEHK:1310) Margin Improvement To 1.8% Tests Bullish Growth Narrative](https://longbridge.com/en/news/284091243.md) - [PRECIOUS-Gold steady as markets await Powell's comments on Iran war impact](https://longbridge.com/en/news/284494433.md) - [21:00 ETQorvis Hosts White House Correspondents' Dinner Watch Party at Butterworth's Featuring Raheem Kassam](https://longbridge.com/en/news/284093581.md) - [AECI Publishes 2025 Audited Financials for Note Guarantors](https://longbridge.com/en/news/284400181.md)