Investment Rating - The report does not provide a specific investment rating for the company [4]. Core Insights - The company achieved a revenue growth of 19.2% year-on-year, reaching RMB 5.14 billion in the first half of 2024, driven by a high cost-performance strategy [2][3]. - The main brand contributed RMB 3.94 billion, growing 18.1%, while the children's brand saw a 24.2% increase to RMB 1.13 billion [2]. - The overall gross margin slightly decreased to 41.5%, with a net profit of RMB 790 million, reflecting a 12.2% increase year-on-year [2]. - The company plans to maintain a dividend payout ratio of 40.3%, with an interim dividend of HKD 0.165 per share, a 154% increase from the previous year [2][4]. Financial Performance - Revenue for 2023 was RMB 8.423 billion, with a projected growth rate of 21.0% [8]. - The net profit for 2023 was RMB 961 million, with a growth rate of 28.7% [8]. - The company maintains a target for net profit growth of 10%-12% for 2024, with a forecasted net profit of RMB 1.07 billion [4][8]. Sales and Marketing Strategy - The company increased advertising expenses by 42.4% to RMB 540 million, focusing on enhancing store image and sponsoring sports events [3]. - E-commerce sales accounted for 24.4% of total revenue, growing 16.1% year-on-year, while offline retail sales also saw over 10% growth [3][4]. Product Performance - Running products represented 52% of total revenue, with over 40% growth, while basketball products grew approximately 20% [3]. - The company plans to launch a co-branded series with a notable athlete to boost basketball shoe sales in the fourth quarter [4]. Market Positioning - The current stock price is HKD 3.47, with a market capitalization of HKD 7.175 billion [5]. - The company is trading at a price-to-earnings ratio of 6.1 times for FY24E, indicating an attractive valuation [4][9].
361度：收入/利润逆市双位数增长