Investment Rating - No explicit investment rating provided in the report [4] Core Views - Shenzhou International's revenue grew by 12.2% YoY in H1 2024, with net profit attributable to shareholders increasing by 37.8% YoY [1] - Gross margin improved significantly by 6.6 percentage points YoY, exceeding expectations [1][3] - Overseas capacity expansion and efficiency improvements are expected to drive further performance growth [1][3] Revenue Breakdown By Product Category - Sportswear revenue increased by 7.6% YoY to RMB 9.213 billion, accounting for 71% of total revenue, driven by rising demand in mainland China [2][6] - Casualwear revenue grew by 20% YoY to RMB 2.761 billion, accounting for 21.3% of total revenue, supported by demand from Japan, Europe, and other markets [2][6] - Underwear revenue surged by 47.4% YoY to RMB 903 million, accounting for 7% of total revenue, primarily due to increased demand in Japan [2][6] - Other knitwear revenue increased by 12.2% YoY to RMB 100 million, accounting for 0.8% of total revenue [2][6] By Region - China market revenue grew by 20% YoY to RMB 3.72 billion, accounting for 28.7% of total revenue, driven by sportswear demand [2][7] - Europe market revenue increased by 4.4% YoY to RMB 2.527 billion, accounting for 19.5% of total revenue, supported by casualwear orders [2][7] - Japan market revenue rose by 27% YoY to RMB 2.12 billion, accounting for 16.3% of total revenue, driven by casualwear and underwear demand [2][7] - US market revenue grew by 2.7% YoY to RMB 1.88 billion, accounting for 14.5% of total revenue, supported by sportswear orders [2][7] - Other markets revenue increased by 7.4% YoY to RMB 2.73 billion, accounting for 21% of total revenue, driven by casualwear demand in South Korea, Australia, and Southeast Asia [2][7] By Key Clients - Top four clients (Uniqlo, Nike, Adidas, Puma) contributed 79.5% of total revenue, with a YoY growth of 11.7% [2][7] - Uniqlo became the top contributor with revenue of RMB 3.4 billion (+33.8% YoY), driven by casualwear and underwear orders [2][7] - Nike revenue declined by 6.5% YoY to RMB 3.24 billion due to price reductions, though volume grew by 1-2% [2][7] - Adidas revenue increased by 23.8% YoY to RMB 2.33 billion, while Puma revenue remained stable at RMB 1.34 billion [2][7] - Domestic clients (Li-Ning, Anta, Xtep) accounted for 11.2% of total revenue, up 0.4 percentage points YoY [2][7] - Lululemon revenue grew by over 60% YoY, and the company added a new client, LACOSTE [2][7] Profitability and Margins - Gross margin reached 29% in H1 2024, up 6.6 percentage points YoY, driven by improved capacity utilization and overseas factory efficiency [3][8] - Net profit margin attributable to shareholders was 22.6%, up 4.2 percentage points YoY [3][8] - Core profit, excluding government subsidies and exchange gains, increased by 61.1% YoY to RMB 2.76 billion [3][8] Overseas Capacity Expansion - Vietnam's new factory increased fabric capacity from 400 tons/day to 600 tons/day [3][10] - A new factory in Cambodia with 12,000 employees is under construction and expected to partially operate by 2025 [3][10] - Total employee count reached 102,000 in H1 2024, with 10,000 new hires, including 2,200 in Vietnam and 18,000 in Cambodia [10] Dividend Policy - The company maintains a stable dividend payout ratio of 50-60%, with an interim dividend of HKD 1.25 per share, representing a payout ratio of 58.5% [9] Inventory and Raw Materials - Inventory turnover days remained stable at 127 days in H1 2024, with higher inventory levels in the first half due to pre-stocking for future production [9] - The company's main raw material is cotton yarn, with inventory levels reflecting raw material stock [9]

Investment Rating - Buy (maintained) [1] Core Views - Strong profit growth driven by order recovery in H1 2024 [2] - Revenue increased by 12.2% YoY to RMB 12.976 billion, with net profit attributable to shareholders rising by 37.8% YoY to RMB 2.931 billion [2] - Sales net margin improved to 22.6%, up 4.2 percentage points YoY, and gross margin increased to 29.0%, up 6.6 percentage points YoY [2] - Significant growth in domestic and Japanese markets, with domestic revenue up 20.0% and Japanese revenue up 27.0% [2] - The company's market share among major clients has further increased, particularly in the domestic and Japanese markets [2] Business Breakdown By Product Category - Sportswear: RMB 9.213 billion, up 7.6%, accounting for 71.0% of total revenue [2] - Casualwear: RMB 2.761 billion, up 20.0%, accounting for 19.9% of total revenue [2] - Underwear: RMB 903 million, up 47.4%, accounting for 7.0% of total revenue [2] - Other knitwear: RMB 99.5 million, up 12.2%, accounting for 0.7% of total revenue [2] By Region - Europe: RMB 2.527 billion, up 4.4%, accounting for 19.5% of total revenue [2] - USA: RMB 1.881 billion, up 2.7%, accounting for 14.5% of total revenue [2] - Japan: RMB 2.116 billion, up 27.0%, accounting for 16.3% of total revenue [2] - Other markets: RMB 2.728 billion, up 7.4%, accounting for 21.0% of total revenue [2] - Domestic market: RMB 3.724 billion, up 20.0%, accounting for 28.7% of total revenue [2] Operational Highlights - Improved capacity utilization and increased efficiency in overseas factories contributed to the significant improvement in gross margin [3] - Sales/management/financial expense ratios were 0.7%/7.3%/1.5%, with management expenses decreasing by 0.6 percentage points YoY [3] - Operating cash flow was RMB 2.310 billion, down 14.6% YoY, with cash and cash equivalents at RMB 10.082 billion, down RMB 1.514 billion from the end of 2023 [3] Future Outlook - Revenue is expected to grow by 11%/12%/12% in 2024/2025/2026, reaching RMB 27.641 billion, RMB 31.045 billion, and RMB 34.701 billion respectively [5] - Net profit attributable to shareholders is projected to grow by 29%/14%/12% in 2024/2025/2026, reaching RMB 5.863 billion, RMB 6.672 billion, and RMB 7.444 billion respectively [5] - The company plans to expand overseas production capacity, particularly in Vietnam, and enhance employee incentives and talent development programs [5] Valuation - As of August 30, 2024, the stock price was HKD 64.40, with a P/E ratio of 15/13/12X for 2024/2025/2026 [5] - The company's ROE is expected to be 15.4%/15.1%/14.6% in 2024/2025/2026, with a gross margin of 29.2%/29.5%/30.2% [6]

Investment Rating - The report maintains a "Buy" rating for the company with a target price set at 64.4 HKD [7] Core Insights - The company reported a revenue of 12.2% growth year-on-year in 24H1, reaching 12.98 billion RMB, driven by increased market share among major clients and significant demand growth in mainland China and Japan [1] - The net profit attributable to shareholders increased by 37.8% year-on-year to 2.93 billion RMB, primarily due to higher capacity utilization and the expansion of overseas factories [1] - The company declared an interim dividend of 1.25 HKD per share, a 31.6% increase year-on-year, totaling approximately 1.71 billion RMB, which represents 58.5% of the net profit for 24H1 [1] Revenue Breakdown - Revenue from major clients shows significant variation: Client A contributed 3.4 billion RMB (34% growth), Client B 3.2 billion RMB (6% decline), Client C 2.3 billion RMB (24% growth), and Client D 1.3 billion RMB (stable) [2] - By product category, sportswear revenue was 9.21 billion RMB (8% growth), leisurewear 2.76 billion RMB (20% growth), underwear 0.9 billion RMB (47% growth), and other knitted products nearly 0.1 billion RMB (12% growth) [2] - Geographically, revenue from mainland China was 3.7 billion RMB (20% growth), EU 2.5 billion RMB (4% growth), Japan 2.1 billion RMB (27% growth), and the US 1.9 billion RMB (3% growth) [2] Profitability Metrics - The company's gross margin improved to 29%, an increase of 6.6 percentage points, while the net profit margin rose to 22.6%, up by 4.2 percentage points [3] - Selling and distribution expenses remained stable at 0.7% of revenue, while administrative expenses decreased by 0.6 percentage points to 7.3% of revenue [3] Capacity Expansion and Workforce - As of the end of 24H1, the company employed 18,000 staff at its new garment factory in Cambodia, with ongoing improvements in production efficiency [4] - The company is actively recruiting, having added approximately 2,200 employees at its Vietnam factory in the first half of the year [4] - The company is expanding its capacity in Vietnam and has acquired full ownership of a subsidiary in Vietnam to enhance fabric production capacity [4] Financial Forecast - The company expects continued growth in the second half of the year, with capacity utilization projected to remain at ideal levels [5] - Revenue forecasts for 2024-2026 are 28.76 billion RMB, 32.98 billion RMB, and 37.70 billion RMB, with net profits of 5.62 billion RMB, 6.51 billion RMB, and 7.32 billion RMB respectively [5]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a significant recovery in revenue and net profit for 2024H1, driven by structural improvements in order demand and a substantial increase in gross margin [3] - The company is a leading vertically integrated knitwear manufacturer, with a notable increase in production efficiency and capacity utilization [3] Revenue and Profit Forecast - Total revenue for 2024E is projected at 27,521 million, with a year-on-year growth of 10.22% [2] - Net profit attributable to shareholders for 2024E is forecasted at 5,831 million, reflecting a year-on-year increase of 27.95% [2] - The earnings per share (EPS) for 2024E is estimated at 3.88 [2] Performance Highlights - The company achieved a revenue of 12.976 billion with a year-on-year increase of 12.2% and a net profit of 2.931 billion, up 37.8% [3] - The gross margin improved significantly to 29%, an increase of 6.6 percentage points year-on-year, due to enhanced production efficiency and capacity utilization [3] - The company declared an interim dividend of 1.25 HKD per share, with a payout ratio of 58.3% [3] Product and Market Analysis - The company experienced a volume increase of 20% in 2024H1, with a decline in average selling price (ASP) due to a shift in product mix towards lower-priced categories like underwear and casual wear [3] - Revenue growth by product category showed sportswear, casual wear, and underwear increasing by 7.6%, 20%, and 47.4% respectively [3] - Key clients include Uniqlo, Nike, Adidas, and Puma, with revenues of 3.4 billion, 3.24 billion, 2.33 billion, and 1.34 billion respectively [3] Capacity Expansion and Strategic Moves - The company is steadily ramping up production capacity in new factories in Cambodia and Vietnam, with a total workforce of 102,000 as of 2024H1 [3] - The acquisition of a fabric factory in Vietnam is expected to enhance fabric supply for overseas garment factories [3] Adjusted Profit Forecast - The net profit forecasts for 2024-2026 have been adjusted to 58.3 billion, 64.8 billion, and 71.9 billion respectively, with corresponding P/E ratios of 15, 14, and 12 [3]

Investment Rating - The report maintains a "Buy" rating for the company [1][2][6] Core Insights - The company reported a revenue of 12.98 billion, a year-on-year increase of 12%, and a net profit attributable to shareholders of 2.93 billion, a year-on-year increase of 38%, with revenue below expectations but profit exceeding expectations. The proposed cash dividend payout ratio is 59% [1] - Growth in sports products and the U.S. market was below average, impacting the average selling price (ASP), which was the main reason for revenue falling short of expectations. By product, revenue growth for sports, leisure, underwear, and other knitted products was 8%, 20%, 47%, and 12% respectively. By market, revenue growth in China, Europe, the U.S., Japan, and other markets was 20%, 4%, 3%, 27%, and 7% respectively, with Japan experiencing rapid growth due to increased demand for leisure and underwear clothing [1] - The gross margin significantly improved, leading to a notable increase in profitability. The gross margin for the first half of 2024 increased by 6.5 percentage points to 29%, primarily due to improved overall capacity utilization and increased production efficiency at overseas factories. The net profit margin increased by 4.2 percentage points to 22.6% [1] - The company is steadily expanding its overseas capacity, with the workforce at the new garment factory in Cambodia reaching 18,000, meeting planned expectations, and production efficiency continuing to improve. The Ho Chi Minh City garment factory in Vietnam has hired approximately 2,200 additional employees. The company has also acquired land use rights and production equipment in Vietnam to expand fabric production capacity [1] - With the gradual completion of inventory destocking by downstream overseas brands by the end of 2023, the company's revenue has returned to a growth trend in 2024, with capacity utilization quickly recovering and strong profitability, reflecting the company's adaptability to changing market conditions and its core competitive advantages. Looking ahead to the second half of 2024, it is anticipated that capacity utilization will remain at an ideal level, with further improvement in gross margin [1] Financial Forecast and Investment Recommendations - Based on the interim report, the profit forecast has been adjusted, and earnings per share for 2024-2026 are expected to be 3.99, 4.49, and 5.04 yuan respectively, with a DCF target valuation of 108.43 HKD [2][6]

Investment Rating - Buy (Maintained) with a current price of HKD 64.25 [1] Core Views - The company achieved a significant recovery in profitability in the first half of 2024, with revenue and net profit attributable to shareholders increasing by 12.2% and 37.8% YoY, respectively [5] - The gross margin improved notably by 6.5 percentage points to 29.0%, driven by higher capacity utilization and enhanced production efficiency in overseas factories [5] - The company's net profit margin attributable to shareholders rose by 4.2 percentage points to 22.6%, reflecting high-quality growth [5] - The company's top four clients (Uniqlo, Nike, adidas, Puma) accounted for 79.5% of total revenue, with a combined revenue growth of 11.7% YoY [5] - The company is expanding its overseas production capacity, with new factories in Cambodia and Vietnam, and plans to further increase its fabric production capacity by 50% [6] Financial Performance - Revenue for the first half of 2024 reached RMB 12.98 billion, up 12.2% YoY, while net profit attributable to shareholders was RMB 2.93 billion, up 37.8% YoY [5] - EPS for the first half of 2024 was RMB 1.95, with an interim dividend of HKD 1.25 per share and a payout ratio of 58.3% [5] - The company's operating cash flow decreased by 14.6% YoY to RMB 2.31 billion in the first half of 2024 [5] - The company's net cash assets after deducting borrowings stood at RMB 12.69 billion as of June 2024, indicating strong financial resilience [6] Product and Regional Breakdown - By product category, sportswear/leisurewear/underwear accounted for 71.0%/21.3%/7.0% of total revenue, with YoY growth rates of 7.6%/20.0%/47.4%, respectively [5] - By region, domestic sales accounted for 28.7% of total revenue, growing 20.0% YoY, while overseas markets in Europe/Japan/US/others grew by 4.4%/27.0%/2.7%/7.4% YoY, respectively [5] Future Outlook - The company aims to achieve a sales volume growth target of 15-20% for the full year of 2024 [6] - The company plans to continue expanding its overseas production capacity, with new factories in Cambodia and Indonesia, and further enhance its automation and digital capabilities [6] - The company is expected to maintain strong market share and profitability, with projected EPS of RMB 3.71/4.29/4.90 for 2024/2025/2026, and PE ratios of 16/14/12 times, respectively [6] Valuation and Forecast - The company's revenue is forecasted to grow by 10.5% in 2024, reaching RMB 27.59 billion, with net profit expected to grow by 22.3% to RMB 5.57 billion [7] - The company's ROE is projected to increase from 14.3% in 2023 to 16.4% in 2024, with a further rise to 19.5% by 2026 [7] - The company's P/E ratio is expected to decline from 19x in 2023 to 12x by 2026, reflecting strong earnings growth [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a significant profit growth driven by a recovery in gross margin and continuous improvement in overseas efficiency [1] - The revenue for the first half of 2024 reached 12.98 billion yuan, a year-on-year increase of 12.2%, with a gross profit of 3.76 billion yuan, up 45.0% year-on-year [1] - The company declared an interim dividend of 1.25 HKD per share, with a payout ratio of 58.5% [1] Revenue Breakdown - By product category, revenue for sports, leisure, underwear, and other knitted products in the first half of 2024 was 9.21 billion, 2.76 billion, 0.90 billion, and 0.10 billion yuan, respectively, with year-on-year growth rates of 7.6%, 20.0%, 47.4%, and 12.2% [2] - By region, revenue from mainland China, Europe, Japan, the United States, and other regions was 3.72 billion, 2.53 billion, 2.12 billion, 1.88 billion, and 2.73 billion yuan, with year-on-year growth rates of 20.0%, 4.4%, 27.0%, 2.7%, and 7.4% [2] - The top four customers contributed revenues of 3.40 billion, 3.24 billion, 2.33 billion, and 1.34 billion yuan, with year-on-year changes of +33.9%, -6.5%, +23.8%, and flat [2] Gross Margin and Expense Ratio - The gross margin for the first half of 2024 was 29.0%, an increase of 6.6 percentage points year-on-year, attributed to improved capacity utilization and enhanced production efficiency at overseas factories [3] - The selling, general, and administrative expense ratios were 0.65%, 7.27%, and 1.47%, respectively, with year-on-year changes of -0.05, -0.63, and +0.21 percentage points [3] - The net profit margin was 22.6%, up 4.2 percentage points year-on-year, although the increase was less than that of the gross margin due to reduced foreign exchange gains and government subsidies [3] Overseas Capacity and Efficiency - As of the end of the first half of 2024, the total number of employees in the group was 102,000, up from 92,000 at the end of 2023, with the new garment factory in Cambodia reaching its planned employee count of 18,000 [4] - The company acquired a new factory in Vietnam to further expand fabric production capacity, enhancing support for overseas garment factories [4] Profit Forecast and Valuation - The company expects revenues of 27.73 billion, 30.75 billion, and 33.99 billion yuan for 2024 to 2026, with year-on-year growth rates of 11.1%, 10.9%, and 10.6% [5] - The forecasted net profit for the same period is 6.03 billion, 6.76 billion, and 7.57 billion yuan, with year-on-year growth rates of 32.4%, 12.1%, and 11.9% [5] - The corresponding price-to-earnings ratios are projected to be 15, 13, and 12 times [5]

申洲国际（02313.HK） 优于大市 上半年收入增长 12%，毛利率提升 6.6 百分点 | --- | --- | --- | --- | --- | --- | |---------------------|--------|--------|--------|--------|--------| | 盈利预测和财务指标 | 2022 | 2023 | 2024E | 2025E | 2026E | | 营业收入(百万元) | 27,781 | 24,970 | 27,592 | 31,153 | 34,914 | | (+/-%) | 16.5% | -10.1% | 10.5% | 12.9% | 12.1% | | 净利润(百万元) | 4563 | 4557 | 5915 | 6867 | 7743 | | (+/-%) | 35.3% | -0.1% | 29.8% | 16.1% | 12.8% | | 每股收益（元） | 3.04 | 3.03 | 3.93 | 4.57 | 5.15 | | EBIT Margin | 18.8% | 18.2% | 22.0% | 23.0% | 23 ...

[Table_Title] 收入增速受乙客户影响，但净利端好于预期 [Table_Title2] 申洲国际(2313.HK) [Table_Summary] 事件概述 2024H1 年公司实现收入/归母净利/经营性现金流分别为 129.76/29.31/23.10 亿元、同比增长 12.18%/37.81%/- 14.58%，收入低于市场预期我们分析主要由于乙客户订单下 滑，净利好于市场预期主要来自产能利用率修复下的毛利率 改善；且剔除汇兑损益（23/24H1 年汇兑收益 2.44/0.75 亿 元）及其他收入（主要为利息收入+政府补助，23/24H1 其他 收入为 5.07/6.35 亿元）后归母净利为 22.2 亿元，同比增长 61.4%。 公司派发中期股息每普通股 1.25 港元，股息派息比例为 58.52%（23H1 62.0%），对应年股息率 3.9%。 分析判断: 国内及日本订单增幅较大，甲、丙客户增长明显。（1） 分客户来看，收入放缓受乙客户下滑、丁客户持平影响，但 甲、丙客户仍在体现份额提升。24H1 来自主要客户的客户甲/ 乙/丙/丁收入分别为 34.01/32.42/23.34/13.36 ...

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a revenue of 12.2% year-on-year growth and a net profit increase of 37.8% for H1 2024, indicating a strong performance that exceeded profit expectations while slightly missing revenue forecasts [1]. - The gross margin improved significantly, rising by 6.6 percentage points to 29.0% due to the recovery in capacity utilization [1]. - The company is experiencing robust order growth, particularly from key clients such as Uniqlo, Nike, and Adidas, with expectations for continued strong performance in H2 2024 [2]. - The company is actively expanding its workforce and production capacity to meet increasing demand, with a focus on enhancing its competitive edge through vertical integration and international expansion [2]. Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 12.2% growth to 12.98 billion RMB and a net profit of 29.3 billion RMB, reflecting a 37.8% increase [1]. - The gross margin for H1 2024 was 29.0%, up from 22.4% in H1 2023, driven by improved capacity utilization [1]. - The company declared an interim dividend of 1.25 HKD per share, a 31.6% increase year-on-year [1]. Customer and Market Dynamics - Orders from major clients such as Uniqlo and Adidas showed significant growth, with sales to the top four clients reaching 34.0, 32.4, 23.3, and 13.4 billion RMB, representing year-on-year changes of +34%, -6%, +24%, and +0% respectively [2]. - The company’s sales by product category for H1 2024 were 92.1 billion RMB for sportswear, 27.6 billion RMB for casual wear, 9.0 billion RMB for underwear, and 1.0 billion RMB for other categories, with respective growth rates of +8%, +20%, +47%, and +12% [2]. Future Outlook - The company is expected to achieve a revenue growth of over 10% for the full year 2024, with continued recovery in gross margins and significant profit growth anticipated [3]. - The forecasted net profits for 2024, 2025, and 2026 are 58.03 billion RMB, 65.28 billion RMB, and 74.56 billion RMB, reflecting year-on-year growth rates of 27%, 13%, and 14% respectively [3].