Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [5]. Core Insights - The company is projected to achieve revenue of 62.9 to 72.1 billion with a year-on-year growth of 13% to 30% in Q2 2024, and a net profit of 9.6 to 11.0 billion, reflecting a slight decline of 1.6% to 13.4% [1]. - For the first half of 2024, the company expects revenue between 110.5 to 119.8 billion, with a growth rate of 20% to 30%, and a net profit of 17.5 to 18.9 billion, also growing by 20% to 30% [1]. - The growth is attributed to ongoing collaborations with new clients and a steady increase in market share with major clients, particularly as inventory levels for sports brands normalize [1]. - The company has shown superior growth compared to peers, with revenue growth rates of 4.4%, 16.6%, and 0.8% for different months in Q2 2024, while its competitor, Yu Yuan, reported growth rates of 2.5%, 8.3%, and 2.9% [1]. Financial Performance Summary - The company’s revenue for 2022 was 20,569.27 million, with a projected revenue of 24,007.76 million for 2024, reflecting a growth rate of 19.36% [4]. - The net profit for 2022 was 3,228.02 million, with an expected increase to 3,887.52 million in 2024, indicating a growth rate of 21.48% [4]. - The earnings per share (EPS) is projected to rise from 2.77 in 2022 to 3.33 in 2024, with corresponding price-to-earnings (P/E) ratios of 20.79 and 17.26 respectively [4][10]. Strategic Initiatives - The company employs a high-quality multi-client strategy, which does not limit the number of brands it collaborates with, enhancing its reputation and attracting clients [2]. - The company has been successful in increasing its share with Nike, attributed to high rankings in regular assessments and consistent performance in key product categories [2]. - Plans for the next 3-5 years include establishing several new factories in Indonesia and Vietnam to expand production capacity [1].
华利集团：成长领先同业