STELLA HOLDINGS Shares Surge Over 4% on Q2 Revenue Growth and New Factory Plans

Stock News07-17

Shares of STELLA HOLDINGS (SEHK: 01836) have climbed more than 4% in today's trading session.

At the time of writing, the stock was up 4.3% to HK$13.34, with a trading turnover of HK$6.42 million.

Financial Performance Update

The company has announced its unaudited consolidated revenue for the second quarter of the year increased by approximately 1.2% to $449.3 million.

For the first half of the year, the unaudited consolidated revenue rose about 1.5% to $786.7 million.

Shareholder Returns Commitment

The company reaffirmed its commitment to maintaining a dividend payout ratio around 70% for regular dividends, which include final and interim payments.

Additionally, by 2026, it plans to distribute up to an extra $60 million in cash to shareholders through a combination of share buybacks and special dividends.

Strategic Expansion Plans

Under its newly released three-year strategic guidance for 2026-2028, a key focus for the group this year is the commencement of operations and ramp-up of capacity at three new factories.

These facilities are located in Indonesia, Bangladesh, and Vietnam.

Together with the existing factory in Solo, Indonesia, these new plants are expected to add approximately 20 million pairs in additional production capacity over the coming years.

The group anticipates that the three new factories in Indonesia, Bangladesh, and Vietnam will commence operations in the second half of this year.

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