On November 29th, local golf (6858.HK) rose more than 16% to HK $3.95, a four-month high, with a total market capitalization of HK $2.4 billion.
The semi-annual results released by our Golf show that it turned a loss into a profit during the reporting period, with a profit of 1.348 billion yen. Gross margin expanded 4.1 percentage points to 55.3%. In the six months to the end of September, golf revenue rose 31% year-on-year to 11.87 billion yen, and gross profit rose 41.6% to 6.56 billion yen.
During the period, earnings from clothing products surged nearly 1.4 times year-on-year to 1.26 billion yen at fixed exchange rates. Golf clubs, the core product that accounts for more than 70% of the group's revenue, rose nearly 20% in the first half of the year.