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]

港股公司报告 | 公司点评 7 月制造营收增长提速，股息具备吸引力 公司发布 2024 年中期业绩公告 24H1 公司收入 40.2 亿美元，同减 3.4%；归母净利 1.8 亿美元，同增 120.6%； 归母经常性净利 1.8 亿美元，同增 123.8%；毛利率 24.3%，同增 0.8pct； 归母净利率 4.6%，同增 2.6pct。中期股息 0.8 亿美元，平均 0.4 港元/股， 配息率达 45%。 24H1 员工总人数 27.7 万，同增 0.1%；其中制造业 25.6 万，同增 1.3%；零 售业 2.1 万，同减 12.7%。24H1 鞋履出货量 1.207 亿双，同增 9.9%，印尼 占比 53%，越南占比 31%，中国大陆占比 12%。 同时，公司公告 7 月数据，24 年 1-7 月公司收入 47 亿美金，同减 1.5%， 其中制造业务 7 月营收同增 22%，增速环比显著提升；或系基数效应及订 单增长所致；24 年 1-7 月制造业营收同增 5%； 零售业务 7 月营收同减 11%，24 年 1-7 月营收同减 9%。 制造业产能利用率 90%，鞋履平均售价降低 24H1 制造业收入2 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on projected earnings growth and valuation metrics [3]. Core Insights - The company reported a revenue of $4.015 billion for the first half of 2024, a year-on-year decrease of 3.4%, while the net profit attributable to shareholders increased by 120.6% to $184 million [1]. - The manufacturing segment showed resilience with a revenue increase of 2.4% to $2.634 billion, driven by strong demand for footwear and effective cost management [2]. - The retail segment faced challenges, with revenue declining by 12.7% to $1.381 billion, but improvements in gross margin and cost control strategies were noted [2]. Financial Performance Summary - **Revenue Forecast**: Expected revenues for 2024, 2025, and 2026 are projected at $8.262 billion, $8.720 billion, and $9.169 billion, representing year-on-year growth rates of 4.7%, 5.5%, and 5.2% respectively [3]. - **Net Profit Forecast**: Projected net profits for the same years are $375 million, $410 million, and $443 million, with growth rates of 36.6%, 9.2%, and 8.0% respectively [3]. - **Earnings Per Share (EPS)**: EPS is expected to increase from $0.17 in 2023 to $0.23 in 2024, $0.25 in 2025, and $0.27 in 2026 [3]. - **Valuation Metrics**: The price-to-earnings (P/E) ratio is projected to decrease from 10 in 2023 to 7 in 2024 and further to 6 in 2026, indicating an attractive valuation [3]. Manufacturing Business Overview - The manufacturing segment achieved a capacity utilization rate of 90% in the first half of 2024, with a gross margin of 19.1%, reflecting a year-on-year increase of 1.7 percentage points [2]. - The average selling price of footwear decreased by 7.8% to $19.98 per pair, but the volume of footwear shipped increased by 9.9% to 12.1 million pairs [2]. Retail Business Overview - The retail segment's revenue declined by 8.9% year-on-year, but gross margin improved to 34.2% in the first half of 2024 [2]. - The company is focusing on digital transformation and optimizing store networks to enhance operational efficiency [2].

Financial Performance - Revenue for the six months ended June 30, 2024, was $4,015,407 thousand, a decrease of 3.4% compared to $4,154,968 thousand in the same period of 2023[2] - Profit attributable to owners of the company for the six months ended June 30, 2024, was $184,401 thousand, representing an increase of 120.6% from $83,601 thousand in the same period of 2023[2] - Basic earnings per share for the six months ended June 30, 2024, was 11.44 cents, up 120.4% from 5.19 cents in the same period of 2023[2] - Total comprehensive income for the six months ended June 30, 2024, was $170,546 thousand, compared to $29,330 thousand in the same period of 2023[6] - The company reported a net profit of $5,514 thousand for the six months ended June 30, 2024, compared to $3,660 thousand in the same period of 2023[15] - The company reported a significant increase in non-recurring profit attributable to owners, which rose to $178,887 thousand from $79,941 thousand, marking a 123.8% increase[2] - The company's recurring profit attributable to owners increased by 123.8% to $178.9 million, compared to $79.9 million in the same period last year[38] Dividends - The interim dividend declared was HK$0.40 per share, a 100% increase from HK$0.20 per share in the previous year[2] - The company declared an interim dividend of HKD 0.40 per share for the six months ending June 30, 2024, compared to HKD 0.20 per share in the same period of 2023, amounting to approximately HKD 644,851,000[18] - The board declared an interim dividend of HK$0.40 per share, up from HK$0.20 per share in 2023[49] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled $3,510,754 thousand, a decrease from $3,574,374 thousand as of December 31, 2023[7] - Current assets as of June 30, 2024, were $3,694,760 thousand, down from $3,783,858 thousand as of December 31, 2023[7] - Inventory as of June 30, 2024, was $1,256,245 thousand, an increase from $1,247,003 thousand as of December 31, 2023[7] - Cash and cash equivalents as of June 30, 2024, were $699,313 thousand, a decrease from $923,217 thousand as of December 31, 2023[7] - Net current assets increased to $2,036,886 thousand, compared to $1,799,184 thousand as of December 31, 2023, reflecting a growth of 13.23%[8] - Total assets less current liabilities rose to $5,547,640 thousand, an increase of 3.25% from $5,373,558 thousand[8] - The total equity attributable to owners of the company increased to $4,258,443 thousand from $4,240,268 thousand, reflecting a growth of 0.43%[8] - The company incurred a tax expense of $61,229 thousand for the current period, compared to $38,216 thousand in the previous year, representing an increase of 60.25%[16] Revenue Breakdown - Manufacturing business revenue increased to $2,634,404 thousand, up 2.98% from $2,573,895 thousand year-over-year[14] - Retail business revenue decreased to $1,381,003 thousand, down 12.66% from $1,581,073 thousand in the previous year[14] - Revenue from the footwear manufacturing segment increased by 2.4% to $2,634.4 million[30] - Retail revenue from the group's subsidiary, BaoSheng, decreased by 12.7% to $1,381.0 million, with a decline of 8.9% in RMB terms[31] Operational Metrics - The group shipped 120.7 million pairs of shoes, a 9.9% increase from 109.8 million pairs in the same period last year[34] - The average selling price per pair of shoes decreased by 7.8% to $19.98, down from $21.67[34] - Employee costs totaled $993,374 thousand, a decrease of 6.86% from $1,066,381 thousand in the previous year[17] - Total sales and distribution expenses decreased by 10.4% to $424.2 million, accounting for approximately 10.6% of operating revenue[37] Investments and Expenditures - The group's total capital expenditure reached $93.8 million, up from $84.5 million in the first half of 2023[43] - Capital expenditure for manufacturing operations was $67.4 million, compared to $59.9 million in the first half of 2023[43] - Capital expenditure for the retail business increased to $26.4 million, from $24.6 million in the first half of 2023, aligning with its refined retail strategy[44] - The group plans to invest approximately ₹23 billion (approximately $276 million) in a production base in an economic zone in India[45] Market Outlook and Strategy - Global footwear demand showed signs of recovery in the first half of 2024, with Vietnam's footwear exports increasing by 8.8% year-on-year to USD 10.7 billion[26] - The company maintained an optimistic outlook on its manufacturing business and will continue to focus on long-term capacity planning in Indonesia and India, targeting sustainable growth[53] - The group aims to enhance operational resilience and agility while maintaining healthy cash flow and financial stability[52] - The group plans to enhance its digital transformation strategy through lean management and smart automation investments, integrating manufacturing management systems into an operational platform (OCP) to improve efficiency[53] - The group aims to implement a refined retail strategy in response to the increasingly dynamic retail environment in mainland China, enhancing its physical and omnichannel retail presence[53] Corporate Governance and Compliance - The company has adopted and complied with the corporate governance code as per the listing rules, ensuring adherence to standards for securities trading by directors[55] - The external auditor has reviewed the interim financial data without reservation, confirming compliance with the relevant accounting standards[56] - The company will suspend shareholder registration from September 11 to September 13, 2024, for processing dividend eligibility[57]

港股公司报告 | 公司点评 业绩盈喜上半年高增 公司发布正面盈利预告 公司预计 24H1 归母净利同增 115%-120%至 1.80-1.84 亿美元；其中 24Q2 归母净利为 0.80-0.84 亿美元，同增 143%-156%。 盈利增加主要系全球鞋履行业逐渐回暖，公司制造业务的鞋履产能需求畅 旺，叠加低基期效应。 此外，公司 24H1 并无产能调整的相关费用，去年同期因产能调整产生一 次性费用约 0.2 亿美元； 同时，公司 24H1 出售联营公司部分股权产生一次性收益约 0.24 亿美元， 带来正面贡献。 灵活调度产能带动复苏，降本增效持续推动利润增长 公司透过灵活调度产能以及有序加班计划，带动制造业务产能利用率及鞋 履出货量的良好复苏。但由于部分厂区配合加班赶工推高利用率，叠加新 增产能爬坡，导致产能负载未达均衡。 此外，公司致力于推行降本增效计划，叠加低基期效应，从而带动利润的 稳健增长。公司将增强其经营韧性，打造高度敏捷而灵活的营运模式，辅 以综观全局的人力与产能提升计划，以平衡需求、订单排程及劳动力供应， 进而提升产效。 大客户 Adidas 库存压力大幅缓解，利好核心供应链 公司大客户 ...

港股公司报告 | 公司点评 裕元集团(00551) 6 月制造继续恢复,期待半年盈利表现 公司披露 6 月运营散据 集团单月营收 6.5 亿美元,同比-4.3%;累计营收 40 亿美元,同比-3.4%; 其中制造业务营收单月同比 2.9%,累计同比 2.4%;宝胜单月营收同比-14%, 累计同比-8.9%; 集团对创造业务前景保持乐观,魔着产业逐步复苏以及订单愈趋常态化, 我们预计有望推动官收持续增长、提高生产效率及稳健盈利能力。 集团将积极监测情势发展,灵活配置其产能,以平衡需求、订单排程及劳 动力供应,推动综观全局的人力与产能提升计划 。集团将会继续增强其经 营韧性,打造高度敏捷而灵活的营运模式以提升产效,同时善用其核心强 项、调节能力和竞争优势,辅以成本与费用管控以稳固其盈利能力,亦将 专注于维持现金流的健康度以至财务状况的稳健度 。 继续致力于其中长期产能布局策略,包括瞄准劳动力供应及基础设施能支 持永续增长的印度尼西亚及印度,为其制造产能进行多元化配置。集团亦 将继续秉持以价值增长为优先之策略,善用运动休闲潮流以及自身结合自 动化科技及研发实力的整合型产品开发实践能力,寻求更多高附加价值订 单,巩固 ...

Investment Rating - The report assigns an "Outperform" rating for the company [1]. Core Views - The company is the largest footwear manufacturer globally and one of the largest sports retail operators in Greater China, serving major international brands such as Nike and Adidas [4][10]. - The manufacturing business is showing signs of recovery, with a narrowing decline in revenue and improved order trends expected to enhance capacity utilization and income [4][5]. - The retail segment is also recovering, with significant growth in private channels and overall revenue increase [4][28]. - The company is expected to see a valuation correction in 2024, with a projected dividend yield of 8.3% based on a 70% payout ratio [5][29]. Summary by Sections 1. Company Overview - The company is a leading manufacturer of sports and outdoor footwear, with a significant retail presence in Greater China through its subsidiary, Bao Sheng [4][10][11]. - The controlling entity is Pou Chen Corporation, which holds a 51.1% stake in the company [12]. 2. Manufacturing Business - The manufacturing segment contributed 64.1% of total revenue and 84.2% of net profit in 2023 [17]. - The average selling price (ASP) reached a historical high in 2023, indicating strong demand for high-end products [24]. - The manufacturing business is heavily reliant on two major clients, which account for 61% of manufacturing revenue [25]. 3. Retail Business - The retail segment has shown resilience, with a 7.7% year-on-year revenue increase in 2023, driven by strong performance in private channels [4][28]. - The company has streamlined its retail operations, focusing on larger store formats to enhance efficiency [28]. 4. Financial Performance - The company’s revenue for 2023 was $7.89 billion, a 12% decline from the previous year, while net profit was $275 million, down 7% [6]. - The forecast for net profit from 2024 to 2026 is $370 million, $410 million, and $450 million, respectively [5][6]. 5. Valuation and Dividend - The report suggests a price-to-earnings (PE) valuation of 10-12x for 2024, translating to a target price range of HKD 17.82 to HKD 21.38 per share [5]. - The expected dividend yield for 2024 is projected at 8.3%, based on a 70% payout ratio [5][29].

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 14.96 HKD as of May 29 [2]. Core Insights - The company is a global leader in the manufacturing of sports and casual footwear, serving major brands like Nike and Adidas. It has seen a revenue decline in 2023 due to inventory destocking by brand clients, but is expected to benefit from a recovery in the industry and improved operational focus on manufacturing [1][5]. - The company has shifted its strategy back to its core manufacturing business, emphasizing OEM and ODM operations, which is expected to enhance profitability as the industry stabilizes [1][31]. - The company anticipates revenue growth from 2024 to 2026, with projected revenues of 82.62 billion, 87.20 billion, and 91.69 billion USD, respectively, and a significant increase in net profit [2][31]. Summary by Sections Company Overview - Founded in 1988, the company has established itself as a leader in the global footwear manufacturing sector, with production bases in China, Indonesia, and Vietnam. It has diversified its client base, including major brands like Nike and Adidas [1][5]. - The company has undergone several strategic phases, including a focus on retail expansion and a recent return to its manufacturing roots [5][11]. Financial Performance - In 2023, the company reported revenues of 7.89 billion USD, a decrease of 12.0% from the previous year. Manufacturing revenue was 5.06 billion USD, down 18.4%, while retail revenue increased by 2.3% to 2.83 billion USD [1][2]. - The company expects to see a recovery in revenues and profits, with net profit projected to grow significantly in the coming years [2][31]. Strategic Focus - The company is focusing on enhancing its manufacturing capabilities, leveraging its strong relationships with key clients, and optimizing its supply chain through vertical integration and horizontal division of labor [1][20][23]. - The management team is stable and experienced, with a focus on returning to core manufacturing operations and improving operational efficiency [21][31]. Market Outlook - The report indicates that the worst phase for the industry is over, with brand sales stabilizing and inventory destocking nearing completion. This is expected to lead to a recovery in demand for manufacturing services [31]. - The company is well-positioned to capture market share as the industry rebounds, with a focus on high-value orders from leading brands [1][31].

港股公司报告 | 公司点评 裕元集团（00551） 证券研究报告 2024年05月 21日 投资评级 产能利用率提升，右侧渐明；零售全渠道表现稳健 行业 非必需性消费/纺织及 服饰 集团发布2024年一季度报告 6个月评级 买入（维持评级） 当前价格 15.36港元 集团FY24Q1 收入 20.04 亿美元，同减4.9%；归母净利 1.00 亿美元，同增 目标价格 港元 96.9%； FY24Q1集团毛利率25.1%，同增1.5pct；经营溢利率7.3%，同增3.2pct。 基本数据 港股总股本(百万股) 1,612.18 港股总市值(百万港元) 24,763.15 制造业务——降本增效，产效、产能利用率提升 每股净资产(港元) FY24Q1制造业务营业收入12.54亿美元，同减0.1%；毛利率20.3%，同增 资产负债率(%) 3.4pct，主要系产能利用率的显著提升，且灵活调度产能、降本增效有成。 一 年内最高/最低(港元) 16.76/7.32 优化策略及产业趋势带动单价变化；产能利用率88%，同增16pct。 作者 分类别，运动/户外鞋营收 9.96 亿美元，同减1.9%；休闲鞋及运动凉鞋营 收1. ...

Financial Performance - For the three months ended March 31, 2024, the company reported unaudited consolidated profit attributable to owners of $100.0 million[2] - Revenue for the same period was $2,003.6 million, a decrease of 4.9% compared to $2,107.4 million in the previous year[7] - Gross profit increased to $503.1 million, compared to $497.6 million in the prior year, reflecting improved production efficiency[3] - Total comprehensive income for the period was $80.6 million, compared to $74.4 million in the previous year[4] - The profit attributable to the company's owners was $100.0 million, a 96.9% increase from $50.8 million in the same period last year[13] - The company's recurring profit attributable to owners increased by 107.1% to $99.6 million, compared to $48.1 million in the previous year[13] Operating Income and Expenses - The company's operating income from footwear activities decreased by 0.9% to $1,149.5 million, with a 9.1% increase in shipment volume to 58.8 million pairs[7] - Total sales and distribution expenses decreased by 10.6% to $216.1 million, accounting for approximately 10.8% of operating revenue[11] - Administrative expenses decreased by 2.7% to $138.9 million, representing about 6.9% of operating revenue[11] - Other income rose by 2.8% to $37.1 million, equivalent to approximately 1.9% of operating revenue[12] Tax and Financing - The company’s effective tax rate for the period was approximately 23.7%, compared to 17.4% in the previous year[3] - The company’s financing costs decreased to $17.1 million from $22.7 million in the previous year, contributing to improved profitability[3] Market and Retail Performance - The retail subsidiary, Pou Chen, reported a revenue decline of 12.0% to $749.7 million, impacted by weak foot traffic in mainland China[8] - The average selling price per pair of footwear decreased by 9.2% to $19.55 due to changes in product mix[7] Strategic Initiatives - The company continues to pursue a digital transformation strategy to enhance its retail performance amid a challenging environment[6] - The group maintains an optimistic long-term outlook for its manufacturing business, with improved order visibility and demand normalization expected[14] - The company will continue to focus on long-term capacity planning strategies, targeting sustainable growth in Indonesia and India[15] - The group aims to enhance operational resilience and agility while managing costs to solidify profitability and maintain healthy cash flow[14] - The company plans to leverage automation technology and R&D capabilities to seek higher value-added orders and strengthen its product portfolio[15]