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. ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED 裕元工業（ 集 團 ）有限公司 * （於百慕達註冊成立之有限公司） （股份代號：00551） 截至二零二四年三月三十一日止三個月之 未經審核綜合業績 | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | 摘要 | | 裕元工業（集團）有限公司之董事茲公佈本集團截至二零二四年三月三十一日止 三個月之未經審核綜合業績。本公告乃就本公司每季公佈財務業績 ...

Investment Rating - The report upgrades the investment rating to "Buy" [4] Core Views - The company is expected to report a significant increase in net profit for Q1 2024, estimated between $99.1 million and $101.6 million, representing a year-on-year growth of approximately 95% to 100% [5] - The recovery in orders and improved capacity utilization are anticipated to lead to a better-than-expected gross margin [5] - The company has reduced its manufacturing workforce by about 15% in 2023 while maintaining stable revenue for Q1 2024, indicating operational efficiency [5] - The projected revenue for the group for 2024, 2025, and 2026 is $8.397 billion, $8.922 billion, and $9.485 billion respectively, with year-on-year growth rates of 6.4%, 6.3%, and 6.3% [5] - The expected net profit for the same years is $419 million, $491 million, and $565 million, with year-on-year growth rates of 52.4%, 17.2%, and 15.2% respectively [5] Financial Summary - The company reported a revenue of $7.89 billion in 2023, with a projected increase to $8.397 billion in 2024, reflecting a growth of 6.4% [6] - The gross margin is expected to improve from 24.4% in 2023 to 25.6% in 2024 [6] - The return on equity (ROE) is projected to rise from 6.5% in 2023 to 9.8% in 2024 [6] - Earnings per share (EPS) are expected to increase from $0.17 in 2023 to $0.26 in 2024 [6]

Financial Performance - Total footwear shipment decreased by 19.9% to 218.3 million pairs in 2023 compared to 272.7 million pairs in 2022[5] - Revenue declined by 12.0% to $7,890.2 million in 2023 from $8,970.2 million in 2022[5] - Profit attributable to owners decreased by 7.3% to $274.7 million in 2023 from $296.3 million in 2022[5] - Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 13.1% to $777.5 million in 2023 from $894.4 million in 2022[5] - Basic earnings per share decreased by 7.4% to 17.05 cents in 2023 from 18.41 cents in 2022[5] - The overall revenue of the group decreased by 12.0% to approximately $7.9 billion, with footwear revenue declining by 18.4%[26] - The footwear shipment volume decreased by 19.9% to 218.3 million pairs, with revenue in the US and Europe dropping by 31.1% and 22.6% respectively[28] - The group recorded a revenue of $7,890.2 million for the year, a decrease of 12.0% compared to the previous year, primarily due to weak global footwear demand and an industry destocking cycle[47] - The profit attributable to the company's owners was $274.7 million, down 7.3% from $296.3 million in the previous year, with manufacturing profit decreasing by 19.7% to $231.4 million[47] - The group's footwear manufacturing revenue decreased by 18.4% to $4,657.5 million, with footwear shipments down 19.9% to 218.3 million pairs[48] - Gross profit decreased by 9.9% to $1,925.3 million, while the overall gross margin increased by 0.6 percentage points to 24.4%[56] - The return on equity for 2023 was 6.5%, down from 7.1% in 2022[193] - The asset return rate improved to 4.2% in 2023, compared to 3.7% in 2022[193] Cash Flow and Capital Expenditure - Free cash flow increased by 6.4% to $748.8 million in 2023 compared to $703.6 million in 2022[5] - Capital expenditure decreased by 4.1% to $195.9 million in 2023 from $204.3 million in 2022[5] - Cash flow from operating activities reached $944.7 million, up from $907.9 million in the previous year[65] - As of December 31, 2023, the company's cash and cash equivalents totaled $1,142.1 million, an increase from $1,018.3 million in 2022[66] - The group's total capital expenditure for 2023 was $195.9 million, a decrease from $204.3 million in 2022, with manufacturing capital expenditure at $152.0 million[72] Market and Strategic Initiatives - The company plans to enhance strategic partnerships and expand its retail presence in Greater China[3] - The group is implementing a digital transformation strategy, integrating various digital tools to enhance inventory management and store efficiency[32] - The global sports goods market is expected to grow at a compound annual growth rate (CAGR) of 7% from 2023 to 2027[34] - The group aims to leverage long-term trends in sports and leisure to create value and long-term returns for stakeholders[36] - The group plans to invest approximately ₹23 billion (approximately $276 million) in a production base in an economic zone in India, as per a memorandum of understanding signed on April 17, 2023[73] - The company is focusing on sustainability initiatives, aiming to reduce carbon emissions by 25% by 2025[99] Operational Efficiency - The group continues to focus on enhancing sales conversion rates and operational efficiency amid a changing market and promotional environment[42] - The group maintained a stable profit margin despite a revenue decline, with attributable profit decreasing by only 7.3% to approximately $270 million[26] - The contribution of the omnichannel sales to the overall sales of the group increased to 27%[32] - The average selling price of footwear increased by 2.0% to $21.34 per pair, reaching a historical high[28] - The average selling price of high-end footwear increased by 2.0% to $21.34 per pair, partially offsetting the decline in shipments[48] Corporate Governance and Management - The board of directors includes experienced professionals with extensive backgrounds in finance, accounting, and legal affairs, enhancing corporate governance[128] - The company has a strong focus on investor relations, with a dedicated director overseeing strategic planning and coordination of investor activities[113] - The company has undergone changes in its board composition, with several directors up for re-election at the upcoming annual general meeting[128] - The remuneration policy for directors is based on a written policy that aligns with business strategy and shareholder interests, ensuring fairness and performance-based compensation[134] Employee and Shareholder Engagement - The total number of employees decreased by 14.6% to approximately 264,700 as of December 31, 2023, compared to about 310,000 in the previous year[83] - The group maintains a stable dividend policy, with a total dividend for the year of HK$0.90 per share, down from HK$1.10 in 2022[79] - The board has proposed a final dividend of HK$0.70 per share, totaling approximately HK$1,129 million (about $145 million), consistent with the previous year's final dividend[79] - The company emphasizes the importance of performance-based compensation for employees, linking it to individual responsibilities and market salary levels[134] Risk Management and Future Outlook - Despite improved order visibility, ongoing inflation and high interest rates create macroeconomic uncertainties, leading to a conservative outlook for the global footwear industry in the short term[86] - The group plans to enhance operational resilience and agility, focusing on cost control to solidify profitability while maintaining healthy cash flow and financial stability[86] - The company is committed to a long-term capacity layout strategy, targeting sustainable growth in Indonesia and India through diversified manufacturing capacity[86] - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[99]

港股公司报告 | 公司点评 裕元集团（00551） 证券研究报告 2024年03月14日 投资评级 制造端订单能见度好转，毛利率逐季提升 行业 非必需性消费/纺织及 服饰 6个月评级 买入（维持评级） 公司发布2023全年业绩公告 当前价格 11.4港元 23Q4收入19.04亿美元，同减4.7%；归母净利1.37亿美元，同增422.9%； 目标价格 港元 2023年收入78.90亿美元，同减12.0%；归母净利2.75亿美元，同减7.3%； 基本数据 分品类，运动/户外鞋全年收入40.41亿美元，同减17.4%，占比87%；休 港股总股本(百万股) 1,612.18 闲鞋和户外凉鞋全年收入6.16亿美元，同减24.5%，占比13%；鞋底、配 港股总市值(百万港元) 18,378.90 件及其他收入4.02亿美元，同减19%； 每股净资产(港元) 20.55 分渠道，全渠道收入占比27%，加盟店收入占比21%，泛微店收入占比13%； 资产负债率(%) 35.99 直营店和其他占比52%。 一 年内最高/最低(港元) 11.98/7.32 公司23年毛利率24.4%，净利率5.12% 作者 23年公司毛利率24 ...

业绩点评 业绩点评 补库逻辑下景气度向好，看好经营杠杆持续释放 裕元集团（0551.HK） 2024-03-15 星期五 主要财务指标 百万美元 2019A 2020A 2021A 2022A 2023A 销售收入 10,105 8,445 8,533 8,970 7,890 同比增长(%) 4.2% -16.4% 1.0% 5.1% -12.0% 毛利率 24.9% 21.7% 24.0% 23.8% 24.4% 归母净利润 301 -91 115 296 275 同比增长(%) -2.1% -130.2% -226.7% 157.5% -7.3% 归母净利润率 3.0% -1.1% 1.3% 3.3% 3.5% 每股盈利(HKD) 1.46 -0.44 0.56 1.44 1.33 数据来源：Wind、公司公告、国元证券经纪（香港）整理 业绩点评： 相关报告 ➢ 23Q4制造端出货迎拐点，产能利用率显著提升，全年派息约70%： 于23Q4，利用率改善带动盈利能力达近5年单季新高。Q4产能利用率环比 +6pp显著改善至85%。Q4制造业务收入同比-10.1%，鞋履出货量同比-5.0%， 季度制造业务GPM和 ...

智通财经APP获悉，里昂发布研究报告称，予裕元集团(00551)"跑赢大市"评级，股息率高达10.5%属吸 引。集团去年末季及全年销售大致符预期，但受惠制造业务强劲盈利能力，其去年纯利远胜该行及市场 预期。 报告中称，公司去年末季和全年收入同比分别降5%和12%，主因是受到全球需求疲弱和主要客户去库 存影响;但旗下宝胜国际(03813)门店客流量及销售额正在复苏。而公司生产部门受惠原材料成本同比降 22%及人工成本降17%，使得毛利率大幅高于该行及市场预期。另经营利润率也胜市场预期，主要由于 生产业务的强劲毛利率，以及公司营运费用控制和效率优化。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED 裕元工業（ 集 團 ）有限公司 * （於百慕達註冊成立之有限公司） （股份代號：00551） 截至二零二三年十二月三十一日止年度全年業績 | --- | --- | --- | --- | |------------------------------------------|-----------|-----------|---------| | | | | | | 營業收入 （千美元） | 7,890,168 | 8,970,228 | (12.0%) | | 本公司擁有人應佔 | | | | | 經常性溢利 （千美元） 本公司擁有人應佔 | 263,399 | 291,874 | (9.8%) | | 非經常性溢利 （千美元） | 11,311 | 4,473 | 152.9% | | 本公司擁有人應佔 | | | | ...