Group 1 - The core viewpoint of the report is that Minyin International initiates coverage on Virginie (02199) with a "Buy" rating, highlighting its position as a leading manufacturer in the intimate apparel industry, utilizing the IDM model and three core technologies [1] - Virginie has successfully expanded its technological advantages into high-growth areas such as sportswear, with sports products becoming the second-largest business segment [1][2] - The company is expected to enhance profitability and efficiency through optimized customer structure, mature capacity layout in Vietnam, and the near completion of domestic factory relocation [1] Group 2 - Virginie is a top-tier manufacturer in the global intimate apparel industry, employing the IDM model and relying on three core technologies, with projected FY25 revenue and adjusted net profit of HKD 7.84 billion and HKD 400 million respectively [2] - The company has diversified its product offerings from traditional intimate apparel to include sportswear, tight-fitting pants, functional sportswear, and consumer electronic accessories, with sports products accounting for 37% of total revenue in FY25 [3] - The customer base has evolved from reliance on Victoria's Secret (35% revenue share in FY2014) to include brands like Uniqlo, NIKE, Adidas, Lululemon, and On [3] Group 3 - Virginie's production capacity is distributed with 85% in Vietnam and 15% in China, with six factories in Vietnam planned by product category to meet U.S. market demands and effectively manage tariff risks [4] - The company has faced restructuring and interest costs due to the relocation of its Shenzhen factory to Zhaoqing, with FY25 restructuring and interest costs projected at HKD 220 million and HKD 340 million respectively [4] - Future capital expenditures are expected to be manageable, with FY26 capital expenditure estimated at HKD 250 million, and a target to reduce debt by at least HKD 1 billion over the next 3-4 years [4]
民银国际：首予维珍妮“买入”评级 全球贴身内衣制造龙头