Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on projected earnings growth and valuation metrics [3]. Core Insights - The company reported a revenue of $4.015 billion for the first half of 2024, a year-on-year decrease of 3.4%, while the net profit attributable to shareholders increased by 120.6% to $184 million [1]. - The manufacturing segment showed resilience with a revenue increase of 2.4% to $2.634 billion, driven by strong demand for footwear and effective cost management [2]. - The retail segment faced challenges, with revenue declining by 12.7% to $1.381 billion, but improvements in gross margin and cost control strategies were noted [2]. Financial Performance Summary - Revenue Forecast: Expected revenues for 2024, 2025, and 2026 are projected at $8.262 billion, $8.720 billion, and $9.169 billion, representing year-on-year growth rates of 4.7%, 5.5%, and 5.2% respectively [3]. - Net Profit Forecast: Projected net profits for the same years are $375 million, $410 million, and $443 million, with growth rates of 36.6%, 9.2%, and 8.0% respectively [3]. - Earnings Per Share (EPS): EPS is expected to increase from $0.17 in 2023 to $0.23 in 2024, $0.25 in 2025, and $0.27 in 2026 [3]. - Valuation Metrics: The price-to-earnings (P/E) ratio is projected to decrease from 10 in 2023 to 7 in 2024 and further to 6 in 2026, indicating an attractive valuation [3]. Manufacturing Business Overview - The manufacturing segment achieved a capacity utilization rate of 90% in the first half of 2024, with a gross margin of 19.1%, reflecting a year-on-year increase of 1.7 percentage points [2]. - The average selling price of footwear decreased by 7.8% to $19.98 per pair, but the volume of footwear shipped increased by 9.9% to 12.1 million pairs [2]. Retail Business Overview - The retail segment's revenue declined by 8.9% year-on-year, but gross margin improved to 34.2% in the first half of 2024 [2]. - The company is focusing on digital transformation and optimizing store networks to enhance operational efficiency [2].
裕元集团：2024年半年报点评：24Q2制造业务产能利用率环比提升，零售业务费用管控良好