WEIXING(002003) 国泰君安·2024-08-14 07:07Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.48 CNY, up from the previous target of 13.54 CNY [4] - The current stock price is 12.08 CNY [4] Core Views - H1 revenue and profit exceeded expectations, leading to an upward revision of full-year profit forecasts [3][4] - The company's H1 revenue reached 2.23 billion CNY, a 25.6% YoY increase, with net profit attributable to shareholders at 420 million CNY, up 37.8% YoY [5] - Gross margin improved to 41.8%, up 0.6 percentage points, driven by economies of scale and intelligent manufacturing [5] - The company's international market growth outpaced domestic growth, with international revenue increasing by 27.2% YoY [5] - The Vietnam factory, operational since March, is expected to significantly enhance international order-taking capabilities by 2024-2025 [5] Financial Performance - H1 revenue breakdown: buttons contributed 930 million CNY (+27.1% YoY), while zippers contributed 1.26 billion CNY (+24.0% YoY) [5] - H1 gross margin for buttons was 42.1%, and for zippers, it was 42.9%, both showing slight improvements [5] - The company's net profit margin increased to 18.3%, up 1.8 percentage points, with Q2 showing strong expense control [5] - Mid-term dividends amounted to 234 million CNY, with a payout ratio of 56% [5] Market and Industry Analysis - The company is a leader in the domestic apparel accessories industry, with strong growth resilience compared to peers [5] - The report forecasts 2024-2026 EPS at 0.60/0.68/0.77 CNY, up from previous estimates of 0.56/0.65/0.76 CNY [5] - The company is valued at 24x PE for 2024, higher than the industry average, reflecting its robust growth prospects [5] Future Outlook - Orders in August continued to show steady growth, with double-digit growth expected for H2 [5] - The Vietnam industrial park is projected to contribute significantly to international revenue by 2024, with expected revenue in the tens of millions [5] - The company's strong order momentum and capacity expansion are expected to drive sustained growth in the coming years [5]