Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [1]. Core Views - The company has reported strong earnings with a significant increase in manufacturing revenue in October, continuing a high growth trend [1]. - The company is the largest manufacturer of sports, leisure, and outdoor footwear globally, with a diverse client portfolio and production bases [1]. - The report indicates an upward adjustment in profit forecasts due to continued growth in manufacturing revenue and a positive turnaround in retail business [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 6.1 billion USD, a year-on-year increase of 1.5%, with an operating profit margin (OPM) of 6.6%, up by 2.7 percentage points [1]. - The net profit attributable to shareholders reached 330 million USD, a substantial increase of 141% [1]. - Manufacturing revenue for the same period was 4.1 billion USD, reflecting a 9% year-on-year growth, with a gross margin of 19.6%, up by 1.6 percentage points [1]. Production and Sales - The company shipped 187 million pairs of footwear in the first three quarters of 2024, marking a 16.2% increase year-on-year [1]. - The production capacity utilization rate was reported at 92%, an increase of 16 percentage points [1]. - In October 2024, manufacturing revenue grew by 21.3% year-on-year, contributing to a cumulative increase of 10.2% for the year [1]. Future Projections - The company expects revenues for FY24-26 to be 8.65 billion USD, 9.65 billion USD, and 10.94 billion USD respectively, with net profits projected at 460 million USD, 540 million USD, and 620 million USD [1]. - The earnings per share (EPS) are forecasted to be 0.28 USD, 0.33 USD, and 0.38 USD for the respective years [1].

[Table_MainInfo] 公司研究/纺织与服装/服装与奢侈品 证券研究报告 裕元集团（0551）公司公告点评 2024 年 11 月 17 日 | --- | --- | |----------------------------------------------------------------|--------------------| | 股票数据 | | | 1 [ 1 T 月 ab 1 le 5 _ 日 S 收 to 盘 ck 价 I （ nf 港 o ] 元） | 15.88 | | 52 周股价波动（港元） | 6.78-17.48 | | 总股本（百万股） | 1609 | | 总市值（百万港元） | 25544 | | 相关研究 | | | [ 《 Ta 24 b Q le 2 _ 制 R 造 ep 产 o 能 rtI 利 n 用 fo 率 ] | 进一步提升，净利润 | | 增 157.8%》2024.8.22 | | | 《全球头部运动鞋制造商，产能利用率修复带 | | | 动盈利水平持续改善》 2024.6.30 | | | 市场表现 | | [Table_QuoteInf ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on expected performance and dividend yield [4][5]. Core Views - The company reported a revenue increase of 1.5% year-on-year to $6.08 billion for the first nine months of 2024, with a significant net profit increase of 140.9% to $330 million [4][5]. - The manufacturing segment showed strong performance with a 23.1% year-on-year revenue growth in Q3, reaching $1.5 billion, and a net profit increase of 171.2% to $150 million [4][5]. - The company has raised its full-year shipment guidance to a mid-to-high double-digit growth, reflecting strong order fulfillment and production capacity utilization [5]. Financial Summary - **Key Financial Metrics**: - Total revenue for 2023 is projected at $7.89 billion, with a forecasted growth of 2.4% in 2024, 5.0% in 2025, and 5.1% in 2026 [5][8]. - Net profit for 2023 is estimated at $275 million, with significant growth expected in the following years: $441 million in 2024, $493 million in 2025, and $547 million in 2026 [5][8]. - Gross margin is expected to improve gradually from 24.4% in 2023 to 24.9% by 2026 [5][8]. - **Operational Performance**: - Q3 saw a 29.5% increase in shipment volume, totaling approximately 66 million pairs, with a capacity utilization rate improving to 95% [4][5]. - The company has effectively managed costs, with SG&A expenses decreasing by 1.4 percentage points to 10.1% in Q3 [4][5]. - **Future Outlook**: - The company anticipates continued strong performance into Q4, with expectations for further improvements in capacity utilization and profit margins [5]. - Projected earnings per share (EPS) are expected to rise from $0.17 in 2023 to $0.34 by 2026 [5][8].

Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company reported a revenue of $6.075 billion for the first three quarters of 2024, a year-on-year increase of 1.5%, with a gross margin of 24.2% and a net profit attributable to shareholders of $332 million, reflecting a significant year-on-year increase of 140.9% [2]. - The manufacturing segment showed strong performance with a revenue of $4.136 billion, up 9.0% year-on-year, driven by increased demand for footwear products [2]. - The retail segment faced challenges with a revenue decline of 11.6% year-on-year, but effective cost control measures helped improve profitability [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of $2.060 billion, a 12.5% increase year-on-year, with a gross margin of 24.1% [2]. - The net profit for Q3 2024 was $147 million, up 172.3% year-on-year [2]. - The overall net profit margin for the first three quarters was 5.5%, an increase of 3.2 percentage points year-on-year [2]. Manufacturing Business - The manufacturing business maintained a high capacity utilization rate of 92%, significantly up from 76% in the previous year [2]. - The footwear shipment volume increased by 16.2% year-on-year, although the average selling price decreased by 6.8% to $20.24 per pair [2]. - The net profit attributable to shareholders from the manufacturing segment was $302 million for the first three quarters, reflecting a year-on-year increase of 174.2% [2]. Retail Business - The retail segment's revenue was 139.84 billion RMB, down 9.5% year-on-year, with a notable decline in foot traffic in physical stores [2]. - The gross margin for the retail business improved to 34.0%, a year-on-year increase of 0.9 percentage points [2]. - The operating profit margin for the retail segment was 3.7%, up 0.4 percentage points year-on-year [2]. Future Projections - The company expects revenues of $8.441 billion, $8.834 billion, and $9.256 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 7.0%, 4.7%, and 4.8% [2]. - Projected net profits for the same years are $448 million, $482 million, and $535 million, with growth rates of 63.0%, 7.6%, and 11.0% [2]. - The price-to-earnings ratio (P/E) is projected to be 8, 8, and 7 for the next three years, indicating a favorable valuation [2].

Financial Performance - For the nine months ended September 30, 2024, the company reported an unaudited consolidated profit attributable to shareholders of approximately $331.7 million[1]. - The company's revenue for the same period was $6,075.3 million, representing a 1.5% increase from $5,986.6 million in the previous year[7]. - The company achieved a pre-tax profit of $438.5 million, significantly up from $218.0 million in the previous year[2]. - The total comprehensive income for the period was $381.9 million, compared to $78.6 million in the previous year[3]. - The company reported a profit attributable to owners of $331.7 million, a 140.9% increase compared to $137.7 million in the previous year[14]. Revenue Breakdown - The footwear manufacturing revenue increased by 8.2% to $3,782.7 million, with shipment volume rising 16.2% to 186.9 million pairs[7]. - The total revenue from manufacturing operations, including footwear, soles, accessories, and others, was $4,135.5 million, up 9.0% year-on-year[8]. - Revenue from the retail subsidiary, Pou Sheng International (Holdings) Limited, decreased by 11.6% to $1,939.8 million, impacted by weak store traffic in mainland China[8]. - Total revenue for the period reached $6,075.3 million, a 1.5% increase from $5,986.6 million in the same period last year[9]. Cost and Efficiency - The company continues to focus on cost control measures to enhance operational efficiency and profitability[6]. - Total selling and distribution expenses decreased by 8.3% to $624.2 million, representing approximately 10.3% of total revenue[12]. - The average selling price of footwear decreased by 6.8% to $20.24 per pair due to changes in product mix and high base effects[7]. Profitability Metrics - Gross profit rose by 4.5% to $1,472.3 million, with an overall gross margin increase of 0.7 percentage points to 24.2%[10]. - The gross margin for the footwear segment improved to 34.0%, up 0.9 percentage points due to effective discount control and inventory management[11]. Strategic Focus - The company is committed to digital transformation strategies to improve sales conversion rates in its retail operations[6]. - The company anticipates stable demand for quality suppliers in the global footwear industry, despite uncertainties in the macroeconomic environment[15]. - The company plans to enhance operational resilience and production efficiency while managing costs and maintaining healthy cash flow[15]. - The long-term outlook for the sports industry remains optimistic, with a focus on diversifying manufacturing capacity in Indonesia and India[15]. - The company aims to integrate automation technology and R&D capabilities to strengthen its competitive edge in the industry[16].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15 HKD, indicating an expected relative return of over 20% within the next six months [1]. Core Insights - The company has reported better-than-expected earnings, with a projected net profit growth of 140-145% year-on-year for Q1-Q3 2024, amounting to approximately 330-340 million USD [1]. - The growth in net profit is attributed to the normalization of the global footwear market and a significant increase in demand for the company's shoe products from brand clients [1]. - The company is balancing demand with order scheduling and has implemented an orderly overtime plan to support net profit growth, alongside steady capacity increases throughout the year [1]. Summary by Sections Financial Performance - The company’s manufacturing revenue growth for the first nine months of 2024 shows a positive trend, with monthly growth rates of 13%, -12%, 0%, +3%, +8%, +3%, +22%, +21%, and +27% [1]. - The report indicates that after previous years of pandemic and inventory destocking, the leading footwear supply chain is regaining its growth momentum [1]. Market Position - Adidas has raised its full-year revenue guidance, which is expected to benefit the company as a key supplier in Adidas' footwear supply chain [1]. - The report expresses optimism regarding Adidas' recovery, suggesting that the improved guidance reinforces the operational cycle of major brands and restores growth momentum [1]. Earnings Forecast - Based on the performance in Q1-Q3 2024, the earnings forecast has been revised upwards, with expected revenues of 8.65 billion USD, 9.645 billion USD, and 10.935 billion USD for FY24-26 [1]. - The projected net profits for these years are 430 million USD, 480 million USD, and 530 million USD, respectively, which are higher than previous estimates [1]. - The expected EPS for FY24-26 is revised to 0.27 USD, 0.30 USD, and 0.33 USD per share, with corresponding PE ratios of 7X, 6X, and 6X [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15 HKD, indicating a positive outlook for the stock [1]. Core Insights - The company reported a revenue of 660 million USD in September 2024, representing a year-on-year increase of 9.7%, with cumulative revenue reaching 6.1 billion USD, up 1.5% year-on-year [1]. - The manufacturing segment showed significant growth, with monthly revenue increasing by 26.7% year-on-year and cumulative revenue up by 9% [1]. - The report highlights a strong operational signal from the monthly data, suggesting positive order performance and an optimistic view for Q4 2024, as the company recovers from previous pandemic impacts and inventory adjustments [1]. - Adidas has raised its full-year revenue guidance to 10% growth, which is expected to positively impact the company's order expectations as a key supplier [1]. - The company is projected to achieve revenues of 8.65 billion USD, 9.645 billion USD, and 10.935 billion USD for FY24-26, with net profits of 380 million USD, 420 million USD, and 460 million USD respectively [1]. Summary by Sections Revenue Performance - In September 2024, the company achieved a revenue of 660 million USD, a 9.7% increase year-on-year, while cumulative revenue for the first nine months of 2024 was 6.1 billion USD, reflecting a 1.5% increase [1]. - The manufacturing business saw a monthly revenue increase of 26.7% year-on-year and a cumulative increase of 9% [1]. Operational Outlook - The report indicates that the monthly data shows strong operational signals, with expectations for positive order performance and a favorable outlook for Q4 2024 [1]. - The company is expected to benefit from Adidas's raised revenue guidance, which is anticipated to enhance order expectations [1]. Financial Projections - The company is projected to generate revenues of 8.65 billion USD, 9.645 billion USD, and 10.935 billion USD for FY24-26, with corresponding net profits of 380 million USD, 420 million USD, and 460 million USD [1]. - Earnings per share (EPS) are expected to be 0.24 USD, 0.26 USD, and 0.29 USD for the respective years, with price-to-earnings (PE) ratios of 8X, 7X, and 6X [1].

港股公司报告 | 公司点评 | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-------------------- ...

Financial Performance - Total footwear shipments reached 120.7 million pairs, a 9.9% increase from 109.8 million pairs in the same period last year[6] - Revenue for the period was $4,015.4 million, a 3.4% decrease compared to $4,155.0 million in the previous year[6] - Gross profit was $975.1 million, with a gross margin of 24.3%, up from 23.5% in the prior year[6] - Operating profit increased significantly to $259.3 million, a 67.9% rise from $154.4 million in 2023[6] - Net profit attributable to shareholders was $184.4 million, more than double the $83.6 million reported in the previous year[6] - Basic earnings per share rose to 11.44 cents, up from 5.19 cents in 2023[6] - Revenue for the six months ended June 30, 2024, was $4,015.407 million, a decrease of 3.4% compared to $4,154.968 million in the same period in 2023[12] - Gross profit for the six months ended June 30, 2024, was $975.087 million, slightly down from $977.710 million in 2023[12] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was $184.401 million, a significant increase from $83.601 million in 2023[12] - Basic earnings per share for the six months ended June 30, 2024, were 11.44 cents, up from 5.19 cents in 2023[12] - Total comprehensive income for the six months ended June 30, 2024, was $170.546 million, compared to $29.330 million in 2023[13] - Revenue for the period decreased by 3.4% to $4,015.4 million, while net profit attributable to shareholders increased by 120.6% to $184.4 million[57] - Manufacturing business net profit attributable to shareholders surged by 177.5% to $155.4 million[57] - Footwear shipment volume increased by 9.9% to 120.7 million pairs, with average selling price decreasing by 7.8% to $19.98 per pair[58] - Total operating revenue decreased by 3.4% to $4,015.4 million, with sports/outdoor footwear contributing 51.7% of revenue at $2,074.6 million[59] - The company's manufacturing business shipped 120.7 million pairs of shoes, a 9.9% increase YoY, with an average selling price of $19.98 per pair, down 7.8% YoY[61] - Gross profit for the manufacturing business increased by 12.1% to $502.6 million, with a gross margin improvement of 1.7 percentage points to 19.1%[62] - The company's attributable recurring profit surged by 123.8% to $178.9 million, driven by operational improvements and cost efficiencies[65] - Product development expenses decreased to $68.8 million, focusing on digital prototyping, process reengineering, and sustainable materials[66] - Net cash from operating activities decreased to $173.7 million, with free cash flow at $79.9 million, while cash and equivalents decreased by $223.9 million[67] - The company's bank balance and cash stood at $922.8 million as of June 30, 2024, compared to $1,142.1 million on December 31, 2023[68] - The company's net cash decreased to $65.8 million as of June 30, 2024, from $169.4 million on December 31, 2023[68] - The company's leverage ratio improved to 18.1% as of June 30, 2024, down from 20.7% on December 31, 2023[68] - The company's total capital expenditure reached $93.8 million in the first half of 2024, up from $84.5 million in the same period of 2023[70] - Manufacturing business capital expenditure was $67.4 million in the first half of 2024, compared to $59.9 million in the same period of 2023[70] - Retail business capital expenditure increased to $26.4 million in the first half of 2024, up from $24.6 million in the same period of 2023[70] - The company's share of profits from associates and joint ventures totaled $32.9 million in the first half of 2024, up from $29.1 million in the same period of 2023[74] - The company's current ratio improved to 2.2 as of June 30, 2024, compared to 1.9 on December 31, 2023[68] - The company declared an interim dividend of HKD 0.40 per share, doubling from HKD 0.20 in 2023[78] Assets and Liabilities - Non-current assets as of June 30, 2024, were $3,510.754 million, a slight decrease from $3,574.374 million as of December 31, 2023[14] - Current assets as of June 30, 2024, were $3,694.760 million, down from $3,783.858 million as of December 31, 2023[14] - Cash and cash equivalents as of June 30, 2024, were $699.313 million, a decrease from $923.217 million as of December 31, 2023[14] - Current liabilities decreased from $1,984,674 thousand to $1,657,874 thousand, a reduction of 16.5%[15] - Net current assets increased from $1,799,184 thousand to $2,036,886 thousand, a growth of 13.2%[15] - Total assets minus current liabilities rose from $5,373,558 thousand to $5,547,640 thousand, an increase of 3.2%[15] - Non-current liabilities grew from $663,530 thousand to $814,359 thousand, up 22.7%[15] - Bank borrowings under current liabilities decreased from $643,159 thousand to $357,391 thousand, a drop of 44.4%[15] - Contract liabilities increased from $45,021 thousand to $68,291 thousand, up 51.7%[15] - Equity attributable to the company's owners rose slightly from $4,240,268 thousand to $4,258,443 thousand, a 0.4% increase[15] - Non-controlling interests increased from $469,760 thousand to $474,838 thousand, up 1.1%[15] - Total equity grew marginally from $4,710,028 thousand to $4,733,281 thousand, a 0.5% increase[15] - Deferred tax liabilities increased from $54,604 thousand to $56,579 thousand, up 3.6%[15] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners as of January 1, 2024, was $4.710 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.529 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.642 billion[16] - The company's equity attributable to owners as of June 30, 2023, was $4.077 billion[16] - The company's equity attributable to owners as of January 1, 2023, was $4.189 billion[16] - The company's total comprehensive income for the period was $29.330 million, with a profit of $105.011 million[16] - The company's total comprehensive income for the period was $2.754 million, with a profit of $83.601 million[16] - The company's profit for the period was $184.401 million, with a total comprehensive income of $161.887 million[16] - The company's total comprehensive income for the period was $170.546 million, with a profit of $203.971 million[16] - The company's equity attributable to owners as of June 30, 2024, was $4.733 billion[16] - The company's equity attributable to owners

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has shown significant profit growth in Q2 2024, with net profit increasing by 157.8% to $80 million, despite a slight revenue decline of 1.7% to $2.01 billion [4] - The manufacturing capacity utilization rate has improved to 92%, indicating operational efficiency and potential for continued profit growth in the second half of 2024 [4] - The retail segment has experienced a revenue decline of 10.5% to $4.58 billion, but effective cost control measures have led to a gross margin increase of 2 percentage points to 35.4% [5] - The expected dividend yield for 2024 is projected to reach 9.6%, reflecting a strong return for shareholders [5] - The company’s net profit forecasts for 2024-2026 are $367 million, $406 million, and $449 million respectively, with a price-to-earnings (PE) valuation of 10-12 times for 2024 [5] Summary by Sections Financial Performance - Q2 2024 revenue decreased by 1.7% to $2.01 billion, while gross margin slightly increased to 23.5% [4] - The net profit margin improved by 2.6 percentage points to 4.2% [4] - Manufacturing revenue increased by 4.7% to $1.38 billion, with a net profit margin of 5.1% [4] - Retail revenue decreased by 10.5% to $4.58 billion, with a net profit margin of 3.5% [5] Profitability and Forecasts - The company expects net profits of $367 million in 2024, with a growth rate of 34% year-over-year [6] - The gross margin is projected to improve to 25.19% in 2024, indicating better cost management [6] - The expected earnings per share (EPS) for 2024 is $0.23, with a projected dividend of 0.90 HKD [8] Valuation - The estimated fair value range for the stock is between 17.82 and 21.38 HKD per share based on a PE ratio of 10-12 times for 2024 [5] - The average PE ratio for comparable companies is around 20.04 for 2023 [7] Market Comparison - The company's stock has shown a relative performance of -8.8% over the past month compared to the Hang Seng Index [2] - The stock's price has fluctuated between 6.98 and 16.18 HKD over the past year [1]