Investment Rating - The report maintains a strong buy rating for the company [4] Core Insights - The company is expected to achieve a revenue growth of 15% and a net profit growth of 37% in 2024, driven by improved capacity utilization and efficiency in overseas factories [1][9] - Forecasted net profits for 2025, 2026, and 2027 are projected to be 6.61 billion, 7.25 billion, and 7.98 billion respectively, with corresponding price-to-earnings ratios of 13X and 12X for 2025 and 2026 [1][9] Summary by Sections Customer Segmentation - Revenue from the top four customers in 2024 shows significant growth: Uniqlo +33% (28% share), Nike -3% (26% share), Adidas +35% (17% share), and Puma +11% (10% share) [2] Product Category - Revenue growth by category in 2024: Sports category +9.8% (69.1% share), Leisure category +27.1% (25.1% share), and Underwear category +34.6% (5.0% share) [2] Regional Performance - Revenue growth by region in 2024: Europe +3.2%, Japan +31.5%, USA +18.9%, and China +13.2% [2] Financial Data and Valuation - Total revenue for 2024 is projected at 28.663 billion, with a year-on-year growth of 15% [3] - Net profit for 2024 is expected to reach 6.241 billion, reflecting a 37% increase [3] - The company’s gross margin improved by 3.8 percentage points to 28.1% in 2024 [9] - The company’s return on equity (ROE) is projected to be 17.4% in 2024, with a decrease in the debt-to-asset ratio to 32.5% [4][11] Dividend Information - The company plans to distribute a total dividend of 2.53 HKD per share for 2024, with a payout ratio of 55.8% [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The increase in capacity utilization is driving profit growth, with expectations for new customers and capacity expansion [5] - The company reported a revenue of 28.66 billion RMB for 2024, representing a year-on-year growth of 14.8%, attributed to effective customer expansion and improved capacity utilization [7] - The gross profit for 2024 was 8.05 billion RMB, a year-on-year increase of 32.9%, with a gross margin of 28.1%, up 3.8 percentage points [7] - The company announced a final dividend of 1.28 HKD per share, with a total dividend payout of 2.53 HKD per share for 2024, indicating a strong dividend policy [7] - The company has seen significant growth in leisure products, with revenue from the Japanese market growing over 30% year-on-year [7] - The company maintains a stable share of core customers, with major brands like Adidas, Nike, Puma, and UNIQLO contributing to 80.7% of revenue in 2024 [7] - The company is expected to achieve net profits of 6.61 billion RMB, 7.47 billion RMB, and 8.38 billion RMB for 2025-2027, with respective growth rates of 5.95%, 12.95%, and 12.14% [7] Financial Summary - Revenue projections for 2025 are estimated at 31.91 billion RMB, with a growth rate of 11.32% [8] - The projected net profit for 2025 is 6.61 billion RMB, with a net profit margin of 20.7% [8] - The company’s total assets are expected to reach 59.56 billion RMB by 2025, with a debt-to-asset ratio of 28.70% [8]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company is expected to achieve a revenue growth of 14.7% year-on-year in 2024, reaching 28.66 billion yuan, with a net profit growth of 36.9%, totaling 6.24 billion yuan, both exceeding expectations [1][10] - The company demonstrates strong competitive advantages, with orders growing faster than major brand clients, particularly benefiting from the performance of non-Nike clients [3][53] - The company is positioned to maintain its leading growth rate in the industry, with a target price adjustment to 75-82 HKD, reflecting a PE ratio of 16-17.5x for 2025 [3][54] Revenue and Profitability - Revenue is projected to grow by 14.8% in 2024, with net profit expected to increase by 36.9% [4][56] - The gross profit margin is anticipated to rise by 3.8 percentage points to 28.1% in 2024, with improvements in both the first and second halves of the year [1][10] - The company’s net cash position is 13.4 billion yuan, an increase of 2 billion yuan year-on-year [1] Customer and Product Performance - Performance varies by product category, with sportswear, casual wear, and underwear growing by 9.8%, 27.1%, and 34.6% respectively [2][27] - Customer performance shows significant growth for clients other than the second-largest client, with notable increases for clients A, C, and D [2][30] - The company is expected to benefit from the recovery of Nike, which has been under pressure, as it continues to outperform its competitors [45][51] Regional Performance - Revenue growth by region shows double-digit increases in China, with the US and Japan also seeing improved sales proportions [2][36] - The company’s revenue from China grew by 13.2%, while sales in Europe saw single-digit growth [36] Future Outlook - The company plans a 10% increase in production capacity for 2025, with stable pricing and gross margins [51] - The management indicates that if Nike recovers, there could be further upside potential for the company’s orders and performance [53][54]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 85.50 [7][8] Core Insights - The company achieved a revenue of RMB 28.66 billion in 2024, representing a year-on-year increase of 14.8%, and a net profit of RMB 6.24 billion, up 36.9% year-on-year, exceeding previous expectations [1][4] - The company has a strong international customer base and an integrated supply chain, which positions it well for long-term growth [1][4] - The company plans to continue its high-quality growth across all product categories, driven by increasing market demand and improved operational efficiency [2][4] Revenue Growth - The sports product sales increased by 9.8% to RMB 19.80 billion, driven by demand from China and the US [2] - The leisure product sales surged by 27.1% to RMB 7.21 billion, primarily due to increased demand from Japan and other regions [2] - The underwear product sales rose by 34.6% to RMB 1.44 billion, also driven by demand from Japan [2] Profitability and Cost Management - The gross margin improved by 3.8 percentage points to 28.1%, attributed to increased capacity utilization and operational efficiency [3] - The net profit margin increased by 3.5 percentage points to 21.8%, indicating a significant enhancement in profitability [3] - The overall expense ratio was well-managed, decreasing by 0.6 percentage points to 9.0% [3] Earnings Forecast and Valuation - The net profit estimates for 2025 and 2026 have been adjusted upwards by 3.4% and 4.6% to RMB 6.79 billion and RMB 7.75 billion, respectively [4] - The target price is based on a projected PE ratio of 17.4x for 2025, reflecting the company's growth potential and operational improvements [4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock price over the next six months [10]. Core Insights - The company reported a 14.8% year-on-year increase in revenue to 28.66 billion, with a net profit growth of 36.9% to 6.24 billion for the year 2024. The second half of the year saw a revenue increase of 17% and a net profit increase of 36.2% [1][2]. - The company plans to distribute a final dividend of HKD 1.28 per share, totaling HKD 2.53 for the year, with a payout ratio of 55.8% [1]. Revenue Breakdown - Revenue from leisure and underwear segments grew significantly, with sports, leisure, and underwear revenues increasing by 9.8%, 27.1%, and 34.6% respectively, contributing to 69%, 25%, and 5% of total revenue [2]. - Geographically, revenue from mainland China, Europe, Japan, the United States, and other regions was 8.06 billion, 5.19 billion, 4.83 billion, 4.61 billion, and 5.97 billion respectively, with year-on-year growth rates of 13.2%, 3.2%, 31.5%, 18.9%, and 13.4% [2]. Profitability Improvement - The company's gross margin improved by 3.8 percentage points to 28.1% in 2024, with the second half showing a gross margin of 27.4% [3]. - The net profit margin increased by 3.5 percentage points to 21.8%, supported by a rise in asset disposal income [3]. Future Projections - The company is expected to achieve revenue growth of 12.4%, 10.2%, and 10% for the years 2025, 2026, and 2027, reaching 32.22 billion, 35.52 billion, and 39.06 billion respectively [3]. - Net profit is projected to grow by 6.8%, 12.1%, and 11.1% for the same years, reaching 6.67 billion, 7.48 billion, and 8.30 billion respectively [3].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to achieve a revenue of 28.66 billion RMB and a net profit of 6.24 billion RMB in 2024, representing year-on-year growth of 15% and 37% respectively [1] - The company anticipates a revenue growth of 10% to 15% in 2025, driven by an increase in order share and improved production efficiency [5] Revenue and Profitability - In 2024, the company's revenue and net profit are projected to be 28.66 billion RMB and 6.24 billion RMB, with respective year-on-year growth rates of 15% and 37% [1] - The gross margin for 2024 is expected to increase by 3.8 percentage points to 28.1%, primarily due to the recovery of capacity utilization [2] - The net profit margin is projected to rise by 3.5 percentage points to 21.8% in 2024 [2] Orders and Client Base - The company has seen healthy growth in orders from major clients such as Uniqlo, Nike, Adidas, and PUMA, with sales to the top four clients reaching 79.9 billion RMB, 74.0 billion RMB, 50.0 billion RMB, and 27.6 billion RMB respectively in 2024 [3] - Sales in the sports, leisure, underwear, and other categories for 2024 are expected to be 198.0 billion RMB, 72.1 billion RMB, 14.4 billion RMB, and 2.2 billion RMB, with year-on-year growth rates of 10%, 27%, 35%, and 11% respectively [3] Capacity and Production - The company is actively increasing its workforce to meet growing customer demand, with a saturated capacity utilization rate in 2024 [4] - The company is expanding its overseas production capacity, with a new garment factory in Cambodia nearing completion and expected to start hiring in 2025 [4] Financial Projections - The company expects to achieve a net profit of 6.65 billion RMB in 2025, with a projected P/E ratio of 11.5 times based on the current price [5] - The estimated revenue for 2025 is 32.03 billion RMB, reflecting a year-on-year growth rate of 11.8% [6]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to achieve a revenue of 28.66 billion RMB and a net profit of 6.24 billion RMB in 2024, representing year-on-year growth of 15% and 37% respectively [1] - The company anticipates a revenue growth of 10% to 15% in 2025, driven by an increase in order share and improved production efficiency [5] Revenue and Profitability - In 2024, the company's revenue and net profit are projected to be 28.66 billion RMB and 6.24 billion RMB, with respective year-on-year growth rates of 15% and 37% [1] - The gross profit margin for 2024 is expected to increase by 3.8 percentage points to 28.1%, primarily due to the recovery of capacity utilization [2] - The net profit margin is projected to rise by 3.5 percentage points to 21.8% in 2024 [2] Orders and Client Base - The company has seen healthy growth in orders from major clients, with sales to its top four clients reaching 79.9 billion RMB, 74.0 billion RMB, 50.0 billion RMB, and 27.6 billion RMB, reflecting year-on-year changes of +33%, -4%, +35%, and +11% respectively [3] - Sales by product category in 2024 are expected to be 198.0 billion RMB for sportswear, 72.1 billion RMB for leisurewear, 14.4 billion RMB for underwear, and 2.2 billion RMB for other categories, with respective year-on-year growth rates of +10%, +27%, +35%, and +11% [3] Capacity and Production - The company is actively increasing its workforce to meet growing customer demand, with a saturated capacity utilization rate in 2024 [4] - The company is expanding its overseas production capacity, with a new garment factory in Cambodia nearing completion and expected to start hiring in 2025 [4] Financial Projections - The company expects to achieve net profits of 6.65 billion RMB, 7.40 billion RMB, and 8.26 billion RMB for the years 2025, 2026, and 2027 respectively [5] - The projected P/E ratio for 2025 is 11.5 times, indicating a favorable valuation compared to historical performance [5]

Investment Rating - The investment rating for the company is "Buy" [1][5] Core Views - The company exceeded revenue expectations in 2024, with a projected continuation of steady growth into 2025 [2][5] - The increase in profit is attributed to disposal gains, which significantly enhanced overall profitability [5] Financial Summary - Revenue for 2024 is projected at 28,663 million RMB, representing a year-on-year increase of 14.8% [4] - Net profit for 2024 is expected to be 6,241 million RMB, reflecting a year-on-year growth of 36.9% [4] - The gross profit margin for 2024 is anticipated to be 28.1%, an increase of 3.8 percentage points compared to the previous year [5] - The company plans to maintain a high dividend payout ratio of 56% for 2024 [5] Growth Drivers - The revenue growth in 2024 is primarily driven by volume increases, particularly due to higher-than-expected orders from Uniqlo [5] - The company expects a low double-digit capacity growth in 2025, with stable average selling prices (ASP) and gross margins [5] - Positive sales guidance from key clients such as Adidas and Uniqlo indicates strong growth potential for 2025 [5]

Core Viewpoint - CICC maintains a "outperform" rating for Shenzhou International (02313) while lowering the target price by 14.5% to HKD 69.89, reflecting a decrease in overall industry valuation [1] Group 1: 2024 Performance - The company reported a 15% increase in revenue to RMB 28.7 billion and a 37% increase in net profit to RMB 6.2 billion, exceeding CICC's expectations due to higher-than-expected revenue growth and a one-time gain from asset sales of RMB 337 million [2] - The company declared a final dividend of HKD 1.28 per share, totaling HKD 2.53 per share for the year, with a payout ratio of 55.8% [2] - CICC expects a 17% revenue growth in 2H24 driven by a 20% year-on-year increase in order volume, maintaining high growth trends despite rising bases [2] Group 2: Sales Performance by Brand and Region - Revenue growth for major brands in 2H24 is projected as follows: Uniqlo +32%, Nike -2%, Adidas +48%, Puma +23%, indicating Shenzhou's increasing market share among key clients [2] - Revenue growth by region for 2024 is expected to be: China +13%, Europe +3%, Japan +32%, USA +19% [2] - A slight decline of approximately 3% in RMB unit price is anticipated in 2H24 due to product mix and raw material price decreases, although this is an improvement from a 7% decline in 1H24 [2] Group 3: Profitability and Cost Control - Gross margin is expected to increase by 3.8 percentage points year-on-year to 28.1% for 2024, with 2H24 gross margin at 27.4%, benefiting from improved capacity utilization [3] - A slight decrease in gross margin quarter-on-quarter is attributed to increased employee numbers and wages, but the company believes there is significant room for future margin improvement [3] - Despite a reduction in government subsidies and foreign exchange gains totaling RMB 145 million, net profit still achieved a 37% growth due to favorable factors including a gain from asset disposal [3] Group 4: Future Capacity and Order Growth - The company plans to increase its workforce by 10,000 to 102,700 employees in 2024, with new factory recruitment in Cambodia starting in March 2025 for about 6,000 positions [4] - Order volume is expected to maintain double-digit growth in 2025, despite pressures from major client Nike, supported by healthy growth from other clients [4] - As employee efficiency improves, the management anticipates a stable increase in gross margin for 2025 [4]

Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company's 2024 annual profit exceeded expectations, with a revenue of 28.66 billion yuan (up 14.8% year-on-year) and a net profit of 6.24 billion yuan (up 36.9 year-on-year), alongside a proposed dividend of 1.28 HKD per share [1][5] - The growth in revenue is driven by a recovery in customer demand and an increase in market share, leading to improved production efficiency and gross margin recovery [1][3] Revenue Breakdown - Revenue from different product categories in 2024: sportswear 19.80 billion yuan (up 9.8%), leisurewear 7.21 billion yuan (up 27.1%), underwear 1.44 billion yuan (up 34.6%), and other knitted products 0.22 billion yuan (up 10.9%) [2] - Revenue by region in 2024: Mainland China 8.06 billion yuan (up 13.2%), Europe 5.19 billion yuan (up 3.2%), Japan 4.83 billion yuan (up 31.5%), the United States 4.61 billion yuan (up 18.9%), and other regions 5.97 billion yuan (up 13.4%) [2] Profitability and Efficiency - The gross margin for 2024 is 28.1% (up 3.8 percentage points year-on-year), with a net profit margin of 21.8% (up 3.5 percentage points year-on-year) [3] - The company has improved its operational efficiency, leading to a significant recovery in gross margin, although the second half of the year saw a slight decline compared to the first half due to increased hiring and wage adjustments [3] Capacity and Expansion - The company has increased its workforce to 103,000 by the end of 2024, up from 92,000 at the end of 2023, and has acquired a new factory in Vietnam to enhance fabric production capacity [4] - The new garment factory in Cambodia is expected to start hiring in March 2025, further expanding production capabilities [4] Financial Forecast and Valuation - Revenue projections for 2025-2027 are 32.14 billion yuan, 35.52 billion yuan, and 39.14 billion yuan, respectively, with corresponding net profits of 6.59 billion yuan, 7.39 billion yuan, and 8.22 billion yuan [5][10] - The company is expected to maintain a low price-to-earnings ratio of 12, 10, and 9 times for the years 2025-2027, indicating potential for growth [5][10]