Edwards Group (09919): Early layout of high dividend scarce targets, sharing stable cash flow and growth dividends.

This year, ACTIVATION GP (09919) continues its positive dividend strategy, insisting on sharing the benefits of development with investors. According to the company's announcement, the final dividend for the year ending on December 31, 2025, is HK$0.32 per share, and the final special dividend is HK$0.33 per share, totaling approximately HK$48.4 million, with a total annual dividend payout of approximately HK$65.53 million. The ex-dividend date is set for June 3, 2026, and the dividend will be officially distributed on June 18, 2026. Investors who hold until the ex-dividend date of June 3, will not only lock in high dividend returns on this occasion but also continue to hold this financially robust, debt-free rare asset to cope with market fluctuations. It is worth noting that this is ACTIVATION GP's fifth year of paying dividends, and the company has long implemented a high dividend policy. The overall dividend payout ratio in 2025 reached about 80%, with approximately 50% as regular dividends and approximately 30% as special dividends. The company's strong cash flow generation ability and sustainable business model are the company's foundation for maintaining high dividend payouts. In an environment of declining market interest rates, the scarcity of Hong Kong stocks with both stable performance and cash flow returns is becoming increasingly prominent. As the largest high-end luxury brand experience marketing service provider in Greater China, ACTIVATION GP (09919) has accumulated more than 550 clients from globally renowned brands, with a market share of 13.9% in 2025. With the market style shifting towards defensive assets, the strategic value of high dividend assets is becoming increasingly prominent, and with its leading position in the high-end brand experience marketing field, ACTIVATION GP is showing its rare combination of "value and growth". The company's PE (TTM) is only about 8 times, with a dividend yield of 10%, far exceeding the average level in the Hong Kong marketing industry. The company also holds nearly HK$300 million in net cash, with no interest-bearing liabilities, and a strong liquidity position. In addition, ACTIVATION GP has demonstrated strong business resilience in the complex and ever-changing economic environment of the consumer industry, with revenue in 2025 reaching approximately HK$707 million, net profit approximately HK$81.1 million, and a net profit margin of approximately 11.5%, up 1.2 percentage points from the 10.3% in the 2024 fiscal year. ACTIVATION GP has deepened its moat in the traditional luxury goods industry, closely aligning with international luxury brands such as CARTIER, CHANEL, LOUIS VUITTON, LORO PIANA, DIOR, PRADA, MIU MIU, VAN CLEEF & ARPELS, and has hosted several industry benchmark projects. For example, the "Extraordinary Journey" exhibition created for LOUIS VUITTON at Shanghai's TaiKoo Hui has attracted over 360,000 visitors, effectively demonstrating its strong marketing capabilities. Furthermore, in response to the cyclical adjustments in the luxury goods industry, ACTIVATION GP is actively seizing opportunities in the emerging fields of beauty and sportswear, as well as the structural opportunities of high-end Chinese brands. The company has organized immersive experience activities for several well-known beauty brands, including the celebration of LANCME's 90th anniversary with the LANCME Happy Train, as well as the LA PRAIRIE caviar lab's Skyscape Journey, setting new standards for experiential marketing in the high-end beauty industry. Looking ahead, it is foreseeable that with the upgrade of profitability and the continuation of the high dividend policy, companies like ACTIVATION GP, with high dividends and abundant cash flow, are expected to navigate through market fluctuations, creating long-term value for investors.