Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The report highlights a significant recovery in revenue from sports products, driven by the company's streamlined operations and improved production efficiency [3]. - The company is well-positioned to capitalize on industry consolidation and supply chain optimization opportunities, particularly with its main production base in Vietnam [3]. - The report anticipates a rebound in orders for sports products starting from the fourth quarter of FY2024, with a notable recovery trend observed in the second half of the fiscal year [3]. Summary by Sections Business Overview - The company has initiated a new round of recruitment for its international high-tech industrial park project in Zhaoqing, which integrates product R&D, manufacturing, and sales [2]. - The relocation of the Shenzhen production base to Zhaoqing is progressing well, with production lines for consumer electronics accessories, cups, and molded products completed by FY2024 [2]. Financial Performance - For FY2024, the company reported revenues of HKD 7.017 billion, a decrease of 11% year-on-year, with net profit dropping by 63% to HKD 143 million [6]. - The revenue breakdown shows a decline in various product categories, with intimate apparel and sports products experiencing a decrease of 6.9% and 5.1% respectively [3]. - The company’s gross margin decreased by 1.5 percentage points to 22.6%, while the net profit margin fell by 2.9 percentage points to 2% [5]. Future Projections - The report forecasts revenues of HKD 8.062 billion, HKD 9.038 billion, and HKD 9.956 billion for FY2025, FY2026, and FY2027 respectively, with corresponding net profits of HKD 200 million, HKD 304 million, and HKD 399 million [6][7]. - The expected P/E ratios for the upcoming years are projected to decrease from 20.4 in FY2024 to 7.3 by FY2027, indicating a potential increase in valuation attractiveness [6][7].
维珍妮：事件点评：业务精简化，运动产品收入明显复苏