WEIXING(002003) 浙商证券·2024-08-15 01:23Investment Rating - The report maintains a "Buy" rating for Weixing Stock (002003) [6] Core Views - Weixing Stock's 24H1 results show strong performance with revenue and net profit growth of 25.6% and 37.8% respectively, reaching 2.3 billion and 420 million [1] - The company's button and zipper businesses are thriving, with button revenue increasing by 27.1% to 930 million and zipper revenue up 24.0% to 1.26 billion [2] - International growth outperforms domestic growth, with international revenue increasing by 27.2% compared to domestic growth of 24.8% [3] - The company's Vietnam Industrial Park, operational since March 2024, is expected to drive future international growth despite initial challenges [3] - Weixing Stock maintains a high dividend payout ratio of 56.2%, consistent with its historical dividend policy [4] Financial Performance - 24H1 revenue reached 2.3 billion, with Q2 revenue at 1.5 billion, showing a 32.2% year-over-year increase [1] - Net profit for 24H1 was 420 million, with Q2 net profit at 340 million, a 36.2% year-over-year increase [1] - Gross margins for button and zipper businesses improved to 42.1% and 42.9% respectively [2] - Capacity utilization increased from 57.1% to 70.7%, with button production capacity reaching 5.9 billion units and zipper capacity at 440 million meters [2] Future Projections - Revenue is projected to grow by 17%, 14%, and 13% in 2024, 2025, and 2026 respectively, reaching 4.59 billion, 5.21 billion, and 5.90 billion [4] - Net profit is expected to grow by 25%, 14%, and 14% in the same period, reaching 700 million, 800 million, and 910 million [4] - The company's PE ratio is projected at 21X, 18X, and 16X for 2024, 2025, and 2026 respectively [4] Industry Position - Weixing Stock is recognized as one of the largest and most comprehensive apparel accessory manufacturers globally [4] - The company has over 30 years of experience in accessory production and is positioned to challenge industry leader YKK [4] International Expansion - The Vietnam Industrial Park, operational since March 2024, is a key component of the company's international strategy [3] - While facing initial challenges with capacity utilization and depreciation, the Vietnam facility is expected to contribute significantly to future growth [3] Dividend Policy - The company has a strong track record of dividend payments, with 21 cumulative dividends since its 2004 IPO [4] - Historical dividend payout ratios have been consistently high, with 88.9%, 74.3%, and 94.3% in 2021, 2022, and 2023 respectively [4]