Investment Rating - The report assigns a "Buy" rating for the company, Huali Group [28]. Core Views - Huali Group is a leading manufacturer of sports shoes, showing steady performance improvement with a revenue increase from 10.01 billion to 20.11 billion CNY from 2017 to 2023, achieving a compound annual growth rate (CAGR) of 12.3% [2][8]. - The company has deepened cooperation with core clients such as Nike and Puma while expanding its customer base, which has contributed to quality growth [19]. - The production capacity has been strategically located in Southeast Asia, with a high per capita output compared to peers, enhancing cost advantages [22][28]. Summary by Sections 1. Performance Improvement - Huali Group has seen its total revenue grow from 10.01 billion CNY in 2017 to 20.11 billion CNY in 2023, with a CAGR of 12.3% [2][8]. - In 2023, the revenue from casual sports shoes reached 17.81 billion CNY, accounting for 88.7% of total revenue [8]. 2. Client Cooperation and Capacity Layout 2.1 Client Cooperation - The company maintains a stable order contribution from its top five clients, which account for 82% to 92% of total orders, indicating limited reliance on any single brand [19]. - New clients such as Reebok and Lululemon have started contributing to revenue since Q1 2023 [19]. 2.2 Capacity and Efficiency - Production capacity increased from 14 million pairs in 2017 to 22 million pairs in 2023, with a capacity utilization rate maintained above 90% [22]. - The per capita output in 2023 was 1,276 pairs per year, significantly higher than peers like Yue Yuen [22]. 3. Profit Forecast and Investment Advice - The forecast for net profit from 2024 to 2026 is 3.861 billion CNY, 4.462 billion CNY, and 5.072 billion CNY, representing year-on-year growth rates of 21%, 16%, and 14% respectively [28]. - The report emphasizes the company's strong ties with high-quality international brands and its cost advantages due to its Southeast Asia production layout, justifying the "Buy" rating [28].
华利集团：运动鞋制造龙头，客户&产能优势尽显