<div id="readability-page-1"><div><p>JM Group (JMG) has put fresh numbers on the table for FY 2025, with second half revenue of HK$122.0 million and basic EPS of HK$0.39, while the trailing twelve months show revenue of HK$269.4 million and EPS of HK$1.17 backed by net income of HK$18.7 million. The company has seen revenue move from HK$92.1 million and EPS of HK$0.12 in 2H 2024 to HK$147.3 million and EPS of HK$0.78 in 1H 2025, before landing at the latest half year figures. Over the past year, earnings growth of 165.4% has taken net margin to 6.9% versus 3.2% a year earlier. For investors, that mix of higher reported profitability and a bigger non cash component in earnings sets up a results season where margin quality matters as much as margin level.</p> <p>See our full analysis for JM Group.</p><p>With the headline numbers on the screen, the next step is to see how this earnings profile lines up against the prevailing market and community narratives around JM Group, and where those stories might need updating.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/fb3dea0e-eb3c-41c0-9c2b-cc810e8f11b1/chart/earnings-and-revenue-history?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/fb3dea0e-eb3c-41c0-9c2b-cc810e8f11b1/chart/earnings-and-revenue-history"/><figcaption>NYSEAM:JMG Earnings &amp; Revenue History as at Feb 2026</figcaption></figure> <h2>165.4% Earnings Growth, But 6.9% Margin Relies Heavily On Non Cash Items</h2> <ul> <li>Over the last 12 months JM Group reports earnings growth of 165.4% and a net profit margin of 6.9%, compared with 3.2% a year earlier, alongside trailing twelve month net income of HK$18.7 million on HK$269.4 million of revenue.</li> <li>What stands out for a bullish view that likes the higher margin is that a high portion of those earnings is non cash, which means:     <ul> <li>The 6.9% margin and HK$18.7 million of net income look stronger on paper than they might in pure cash terms, so bulls need to check how much of that is backed by actual cash generation.</li> <li>The 165.4% earnings growth lines up with the margin move from 3.2% to 6.9%, but the emphasis on non cash items means that investors who focus on cash backed profits may treat that growth more cautiously than the headline suggests.</li> </ul> </li> </ul> <h2>Halves Swing From HK$1.9m To HK$12.4m To HK$6.2m Profit</h2> <ul> <li>The last three half year periods show net income moving from HK$1.9 million in 2H 2024 to HK$12.4 million in 1H 2025, then HK$6.2 million in 2H 2025, alongside revenue of HK$92.1 million, HK$147.3 million and HK$122.0 million respectively.</li> <li>Critics who take a more bearish stance on the stability of the business focus on how uneven that profit line is, and the numbers give them some support:     <ul> <li>The jump from HK$1.9 million to HK$12.4 million and then to HK$6.2 million shows that profit does not move in a straight line with revenue, which matters in a wholesale style model where margins can be thin.</li> <li>When you set those half year figures against the trailing twelve month net income of HK$18.7 million, bears can point out that a big share of the trailing result is concentrated in one strong half, rather than being evenly spread across periods.</li> </ul> </li> </ul><p> Over these swings in half year profit, many investors want to understand how the story could evolve beyond a single reporting period, and <strong>📊 Read the full JM Group Consensus Narrative.</strong></p><h2>P/E Of 56.3x And Shares At HK$6.61 Against DCF Fair Value Of HK$24.33</h2> <ul> <li>The stock trades at HK$6.61 with a P/E of 56.3x, which is below a 73x peer average but above the 17.3x Global Retail Distributors industry average, and is compared with a DCF fair value of HK$24.33 that sits well above the current share price.</li> <li>Supporters who lean bullish on valuation point to the gap between HK$6.61 and the DCF fair value of HK$24.33, but the detailed data add some important context:     <ul> <li>The P/E of 56.3x is higher than the 17.3x industry average, so even with the discount to DCF fair value the shares are not cheap on every yardstick when you compare them to the broader industry.</li> <li>At the same time, risks such as high debt, highly illiquid shares and reported negative shareholders’ equity sit alongside that valuation gap, which helps explain why the market price may sit well below the DCF fair value even after a 165.4% earnings lift.</li> </ul> </li> </ul> <h2> Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on JM Group'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.</p> <h2>See What Else Is Out There</h2> <p>For all the headline earnings growth, JM Group leans heavily on non cash items, uneven half year profits and operates with risks such as high debt and negative equity.</p> <p>If that mix of fragile margins and balance sheet risk makes you uneasy, take a look at our 85 resilient stocks with low risk scores built to spotlight companies with more resilient profiles.</p> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

<p>JM Group (HKEX:JMG) reported FY 2025 second half revenue of HK$122.0 million and basic EPS of HK$0.39, with a trailing twelve months revenue of HK$269.4 million and EPS of HK$1.17. Earnings grew 165.4%, raising net margin to 6.9%. However, a significant portion of earnings is non-cash, prompting caution among investors. The stock trades at HK$6.61 with a P/E of 56.3x, above the industry average, while the DCF fair value is HK$24.33. The uneven profit trajectory raises concerns about stability, suggesting a need for careful evaluation of long-term trends.</p>

JM Group (HKEX:JMG) Earnings Growth Driven By Non Cash Margin Raises Questions For Bulls