Core Viewpoint - The recent quarterly report of Huali Group indicates a growth in revenue but a decline in profitability, highlighting challenges in profit margins and accounts receivable management [1][7]. Operating Performance - In Q1 2025, Huali Group achieved total revenue of 5.353 billion yuan, a year-on-year increase of 12.34%. However, the net profit attributable to shareholders was 762 million yuan, a decrease of 3.25%, and the net profit after deducting non-recurring items was 751 million yuan, down 3.35% [2]. Profit Margin and Cost Control - The company's gross margin was 22.9%, a decrease of 19.3% compared to the same period last year. The net margin was 14.26%, down 13.74% year-on-year. Despite a reduction in total operating expenses (selling, administrative, and financial expenses) to 190 million yuan, which accounted for 3.56% of revenue and decreased by 38.24% year-on-year, the decline in profit margins remains a concern [3]. Accounts Receivable and Cash Flow - As of the end of the reporting period, Huali Group's accounts receivable stood at 3.312 billion yuan, representing 86.25% of the latest annual net profit, an increase of 15.29% year-on-year. Although the operating cash flow per share was 1.04 yuan, up 12.94% year-on-year, the rise in accounts receivable may exert pressure on the company's cash flow [4]. Assets and Liabilities - The company's cash and cash equivalents amounted to 5.459 billion yuan, an increase of 19.12% year-on-year, indicating a healthy cash position. Interest-bearing liabilities rose to 707 million yuan, up 16.24% year-on-year [5]. Shareholder Equity - The net asset value per share was 15.51 yuan, an increase of 14.79% year-on-year. However, earnings per share were 0.65 yuan, a decrease of 2.99% year-on-year [6]. Summary - Huali Group's Q1 2025 performance reflects revenue growth alongside challenges such as declining profit margins and increasing accounts receivable. While the company has made progress in cost control, attention is needed on accounts receivable management and improving profit margins [7].

Core Viewpoint - The company reported a revenue of 5.35 billion yuan in Q1 2025, reflecting a year-over-year increase of 12.3%, while the net profit attributable to shareholders was 760 million yuan, down 3.3% year-over-year, primarily due to the ramp-up of new factory capacity. The company is expected to benefit from capacity improvements in the future, with new customer acquisition and increased market share from existing clients continuing to strengthen its competitive advantage, maintaining a "buy" rating [1]. Group 1: Financial Performance - In Q1 2025, the company achieved a sales volume of 49 million pairs of sports shoes, up 8.24% year-over-year, with an average price of 109 yuan per pair, an increase of 3.8% year-over-year. The volume growth is attributed to strategic customer expansion with brands like Adidas, New Balance, and On, which is expected to contribute to further growth in Q2 2025 [2]. - The company's net profit margin decreased by 2.3 percentage points year-over-year to 14.2%, and the gross profit margin fell by 5.5 percentage points to 22.9%, mainly due to the initial efficiency ramp-up of the new factory. The workforce increased to 184,000 employees, a rise of 17.0% year-over-year [2]. - The company reported inventory of 3.67 billion yuan, up 12.5% year-over-year, and accounts receivable of 3.31 billion yuan, up 15.3% year-over-year, primarily due to inventory buildup related to factory capacity ramp-up and increased sales collections, resulting in a net cash inflow from operating activities of 1.21 billion yuan, up 12.9% year-over-year [2]. Group 2: Strategic Developments - To meet capacity demands, the company acquired 100% stakes in three Vietnamese footwear companies for 23.038 million yuan, 28.250 million yuan, and 16.113 million yuan, respectively, aimed at optimizing production resources for shoe uppers. These companies will be included in the company's consolidated financial statements starting from Q1 2025, and are expected to enhance production capacity synergy within 1-2 years, thereby increasing the company's market share in global footwear manufacturing [3]. Group 3: Profit Forecast and Valuation - The company maintains its profit forecast for 2025-2027 at 4.32 billion yuan, 4.95 billion yuan, and 5.61 billion yuan, respectively. Based on the average PE ratio of comparable companies at 12.7 times for 2025, and considering the potential for continued customer base expansion and solid industry leadership, a target PE of 21.8 times is assigned for 2025, resulting in a target price of 80.82 yuan, with a "buy" rating maintained [4].

部分新客户表现优异销量增长带动收入增长双位数，新厂爬坡拖累毛利率。2025 年第一季度公司实现 营业收入53.53 亿元，同比增长12.3%，主要受阿迪达斯、昂跑、NB 等新客户订单销量增长驱动；归母 净利润7.62 亿元，同比下滑3.2%。毛利率同比下滑5.5 百分点至22.9%，主要受新投产工厂效率爬坡影 响，继2024 年上半年和下半年各投产2 家成品鞋工厂之后，2025年第一季度2 家成品鞋工厂已经投产。 期间费用率同比优化2.0 百分点，其中财务费用率同比下降0.6 百分点至-0.5%，主要受益于汇兑收益增 加，今年Q1 汇兑收益为900 万，去年同期损失1700 万；此外管理费用率同比-1.5百分点至3.7%。在毛 利率承压影响下，营业利润率同比-3.4 百分点至17.6%，归母净利率同比-2.3 百分点至14.2%。 销量保持高个位数快速增长，新老客户结构更加均衡。拆分量价来看，Q1 销售运动鞋0.49 亿双，同比 +8.2%，Asp 约108.4 元人民币，同比+3.8%（美元口径约+2.7%），单价提升预计主要源于高单价品牌 占比提升。分客户看，预计阿迪达斯、昂跑、NB 等新客户订单销量增速 ...

Investment Rating - The investment rating for the company is "Buy" with a target price of 80.82 RMB [7][8]. Core Views - The company reported a revenue of 5.35 billion RMB in Q1 2025, representing a year-over-year increase of 12.3%, while the net profit attributable to the parent company was 760 million RMB, down 3.3% year-over-year. The short-term pressure on profitability is attributed to the ramp-up of new factory capacity. However, the company is expected to benefit from capacity improvements and the expansion of new customers, maintaining its competitive advantage [1][5]. - The company has strategically expanded its customer base, including partnerships with Adidas, New Balance, and On, which have significantly contributed to revenue growth. The company anticipates further impressive growth as the peak season approaches in Q2 2025 [2][5]. - The company's net profit margin decreased by 2.3 percentage points year-over-year to 14.2%, and the gross profit margin fell by 5.5 percentage points to 22.9%, primarily due to the initial efficiency ramp-up of new factories. The workforce increased to 184,000, a 17% year-over-year rise. The company’s inventory was 3.67 billion RMB, up 12.5% year-over-year, and accounts receivable reached 3.31 billion RMB, up 15.3% year-over-year, indicating a focus on stocking for production expansion [3][5]. - The company acquired three Vietnamese shoe companies for a total of approximately 67.4 million RMB to optimize production resources, which are expected to enhance production capacity synergy within 1-2 years, thereby increasing the company's market share in global footwear manufacturing [4][5]. - The profit forecast for 2025-2027 is maintained at 4.32 billion RMB, 4.95 billion RMB, and 5.61 billion RMB, respectively. The company is assigned a PE ratio of 21.8 for 2025, based on a comparable company average PE of 12.7, reflecting its strong customer base and industry leadership [5][6]. Summary by Sections Financial Performance - Q1 2025 revenue was 5.35 billion RMB, a 12.3% increase year-over-year, while net profit was 760 million RMB, a decrease of 3.3% year-over-year [1]. - The company’s net profit margin decreased to 14.2%, and gross profit margin fell to 22.9% due to new factory ramp-up [3]. Customer Expansion - The company has successfully expanded its customer base, notably with Adidas, New Balance, and On, contributing to an 8.24% increase in sneaker sales volume to 49 million pairs in Q1 2025 [2]. Capacity and Acquisitions - The company acquired three Vietnamese shoe companies to enhance production capacity, expected to yield benefits within 1-2 years [4]. Profit Forecast and Valuation - The profit forecast for 2025-2027 is set at 4.32 billion RMB, 4.95 billion RMB, and 5.61 billion RMB, with a target PE ratio of 21.8 for 2025 [5][6].

Investment Highlights - The report highlights the recovery of revenue growth for Yuyue Medical, with a significant increase in overseas sales, achieving a revenue of 7.57 billion yuan in 2024, down 5.1% year-on-year, and a net profit of 1.81 billion yuan, down 24.6% year-on-year [3][8] - Guotai Group's performance shows resilience in its civil explosives business, with a non-net profit growth of 17.09% year-on-year in Q1 2025, despite a slight revenue decline of 1.26% [12][13] - China Merchants Highway reported a revenue of approximately 2.803 billion yuan in Q1 2025, down 7.24% year-on-year, but net profit improved by 2.74% due to cost control and increased investment income [16][17] - Shenzhen Gas's main business in urban gas sales showed growth, with a revenue of 28.348 billion yuan in 2024, down 8.34% year-on-year, but a net profit increase of 1.19% [21][22] - New Industry's overseas business continued to grow rapidly, with a revenue of 4.535 billion yuan in 2024, up 15.41% year-on-year, and a net profit of 1.828 billion yuan, up 10.57% [25][26] - Huali Group's revenue in Q1 2025 grew by 12% year-on-year, driven by new brand collaborations and strong sales of sports shoes [30][31] - Bohai Leasing, a leading aircraft leasing company, reported a significant increase in aircraft sales revenue, reaching 12.7 billion yuan in 2024, up 61.08% year-on-year, driven by a strong aircraft market [35][36] - Weimao Electronics, an industrial intelligent connection control solution manufacturer, achieved a revenue of 260 million yuan in 2024, up 13.69% year-on-year, with a focus on expanding into emerging fields [39][40] Company-Specific Summaries Yuyue Medical (002223.SZ) - The company experienced a revenue decline in 2024 due to high base effects from the previous year, but Q1 2025 showed a recovery with a 9.2% year-on-year increase in revenue [3][9] - The product mix has led to a slight decrease in gross margin, with a 50.1% gross margin in 2024, down 1.2 percentage points year-on-year [10] - The company maintains a strong financial position with 7.08 billion yuan in cash and no short-term or long-term loans [10] Guotai Group (603977.SH) - The civil explosives business showed growth, with a revenue of 327 million yuan in Q1 2025, up 1.4% year-on-year [13][14] - The company faced a decline in electronic detonator sales but saw an increase in explosive engineering revenue [14][15] - The gross margin for Q1 2025 was 32.72%, down 0.5 percentage points year-on-year, but the non-net profit remained stable [15] China Merchants Highway (001965.SZ) - The company is actively pursuing expansion projects, including the ongoing reconstruction of key highways [17][18] - The net profit forecast for 2025-2027 is expected to grow steadily, with projected profits of 5.74 billion yuan in 2025 [18] Shenzhen Gas (601139.SH) - The urban gas sales volume increased by 2.78% in 2024, with significant growth in the Greater Bay Area [22] - The company is expected to benefit from lower upstream gas prices and increased sales volume [22][24] New Industry (300832.SZ) - The company reported a strong performance in overseas markets, with a 27.67% increase in overseas revenue [27] - The gross margin for 2024 was 72.26%, with a focus on expanding the product lineup in the chemical luminescence sector [28] Huali Group (300979.SZ) - The company maintained a strong partnership with major brands, resulting in a 12.34% revenue increase in Q1 2025 [30][31] - The company is expanding production capacity to meet growing demand, with a workforce increase of 17% [31] Bohai Leasing (000415.SZ) - The company is positioned as a global leader in aircraft leasing, with a fleet size of 1,158 aircraft [36] - The net profit forecast for 2025-2027 is expected to grow significantly, with a projected profit of 1.913 billion yuan in 2025 [37] Weimao Electronics (833346.BJ) - The company is focusing on the automotive and industrial automation sectors, with a projected growth in the vehicle wiring harness market [40][41] - The company is expanding its production capabilities to meet increasing demand in emerging markets [41]

兴业证券股份有限公司 关于中山华利实业集团股份有限公司 2024 年年度跟踪报告 | 保荐人名称：兴业证券股份有限公司 | 被保荐公司简称：华利集团 | | --- | --- | | 保荐代表人姓名：张华辉 | 联系电话：020-83637785 | | 保荐代表人姓名：陈旸 | 联系电话：0755-23995226 | 一、保荐工作概述 | 项 目 | 工作内容 | | --- | --- | | 1.公司信息披露审阅情况 | | | （1）是否及时审阅公司信息披露文件 | 是 | | （2）未及时审阅公司信息披露文件的次数 | 0 次 | | 2．督导公司建立健全并有效执行规章制度的 | | | 情况 | | | （1）是否督导公司建立健全规章制度（包括 但不限于防止关联方占用公司资源的制度、 | | | 募集资金管理制度、内控制度、内部审计制 | 是 | | 度、关联交易制度） | | | （2）公司是否有效执行相关规章制度 | 是 | | 3.募集资金监督情况 | | | （1）查询公司募集资金专户次数 | 每月查询 | | （2）公司募集资金项目进展是否与信息披露 | | | 文件一致 | 是 | ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [2] Core Insights - The company reported a revenue of 5.35 billion yuan in Q1 2025, representing a year-on-year increase of 12%, while the net profit attributable to shareholders decreased by 3% to 760 million yuan [5][6] - The new factory's ramp-up is impacting profit margins, with the gross margin declining by 5.5 percentage points to 22.9% due to initial production challenges [6] - The company is expanding its customer base with new clients like Adidas and New Balance, which are expected to drive sales growth and increase average transaction value [6][7] Financial Summary - The latest closing price of the company's stock is 56.14 yuan, with a total market capitalization of 65.5 billion yuan [4] - The company’s earnings per share (EPS) for 2025 is projected to be 3.54 yuan, with a price-to-earnings (P/E) ratio of 15.98 [10] - Forecasted net profits for 2025, 2026, and 2027 are 4.13 billion yuan, 4.72 billion yuan, and 5.44 billion yuan respectively, with corresponding P/E ratios of 16, 14, and 12 [7][10]

Market Outlook - The global athletic shoe market is expected to continue its stable growth over the next 5 to 10 years, driven by consumer demand for comfort and health-oriented lifestyles [2][5] - Emerging markets have significant potential for growth in athletic shoe penetration compared to developed regions like the US and Europe [2] Financial Performance - In Q1 2025, the company experienced a significant increase in new customer orders, particularly from brands like Adidas and New Balance, contributing to revenue growth [3][6] - The gross margin has seen a decline due to the initial inefficiencies of new factories and the onboarding of new employees, which is expected to improve as operations stabilize [3][9] Production and Capacity - The company is currently in a production peak season with full order books and no significant cancellations reported [5][9] - New factories are being established in Vietnam and Indonesia, with the latter expected to have a capacity of over 60 million pairs annually, starting production in mid-2024 [8] Strategic Partnerships - The company is actively pursuing partnerships with emerging brands and has already begun collaboration with Asics [3][4] - There is a focus on automating production processes to enhance efficiency and reduce reliance on skilled labor [3][7] Risk Management - The company is monitoring the impact of potential tariff changes on its operations in Southeast Asia and has prepared various response strategies [9] - Despite uncertainties in the global trade environment, the company plans to maintain its investment pace in production capacity in Indonesia and Vietnam [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has successfully advanced its new brand collaborations, with Q1 2025 revenue growth meeting expectations [5] - In Q1 2025, the company achieved revenue of 5.353 billion RMB, a year-on-year increase of 12.34%, while the net profit attributable to shareholders was 762 million RMB, a decrease of 3.25% [7] - The company continues to deepen cooperation with new clients and emerging sports brands, with sales of sports shoes reaching 49 million pairs, up 8.24% year-on-year [7] - The company has a strong dividend policy, distributing 2.3 RMB per share (including tax) for the 2024 fiscal year, with an expected payout ratio of approximately 70% of net profit [7] - The company is expanding its production capacity to meet downstream demand, with two new shoe factories starting operations in Q1 2025, increasing the workforce to 184,000, a year-on-year increase of 17% [7] - The growth in orders is driven by increased consumer demand in the sports industry and deeper collaborations with brands like Adidas [7] - The company is expected to see a rise in average selling price (ASP) due to structural changes in its client base [7] Financial Summary - Revenue projections for the company are as follows: - 2023: 20.114 billion RMB - 2024: 24.006 billion RMB (19.35% YoY growth) - 2025E: 27.664 billion RMB (15.24% YoY growth) - 2026E: 31.734 billion RMB (14.71% YoY growth) - 2027E: 36.258 billion RMB (14.25% YoY growth) [6] - Net profit projections are as follows: - 2023: 3.2 billion RMB - 2024: 3.84 billion RMB (20% YoY growth) - 2025E: 4.355 billion RMB (13.4% YoY growth) - 2026E: 4.959 billion RMB (13.87% YoY growth) - 2027E: 5.731 billion RMB (15.58% YoY growth) [6] - The company maintains a strong return on equity (ROE) of approximately 21% over the forecast period [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company experienced significant new customer growth in Q1 2025, with revenue reaching 5.35 billion yuan, a year-on-year increase of 12.3%. However, the net profit attributable to the parent company was 760 million yuan, reflecting a decrease of 3.2% due to the impact of new factory ramp-up on profitability [7][8] - The report anticipates improved gross margins in Q2 2025 as scale effects and new factory ramp-up take effect, with long-term optimism regarding new customer volume and increased market share from existing customers [7][8] Financial Summary - Q1 2025 revenue was 5.35 billion yuan, with a volume increase of 8.24% and a price increase of 3.8%. The gross margin was 22.9%, down 5.5 percentage points due to initial training periods for new employees at new factories [7][8] - The company plans to accelerate the construction of new factories to meet the growing demand from new customers, with two new factories in Indonesia and Sichuan launched in Q1 2025, and further expansions planned in Vietnam and Indonesia [7] - The net profit forecast for 2025-2027 has been adjusted to 4.1 billion, 4.76 billion, and 5.51 billion yuan respectively, with corresponding P/E ratios of 16.1, 13.8, and 12.0 times [7][9] Operational Capability - As of Q1 2025, the company had a net operating cash flow of 1.21 billion yuan, with inventory at 3.67 billion yuan and accounts receivable at 3.31 billion yuan, indicating a stable operational capability [8]