Investment Rating - The investment rating for the company is "Buy" with a target price of 12.98 HKD, maintaining the rating [1]. Core Insights - The company reported a revenue of 4.02 billion USD for the first half of 2024, a decrease of 3.4% year-on-year, while the net profit attributable to shareholders increased by 120.6% to 180 million USD [1]. - The gross profit margin improved to 24.3%, up by 0.8 percentage points, and the net profit margin reached 4.6%, an increase of 2.6 percentage points [1]. - The company declared an interim dividend of 80 million USD, translating to an average of 0.4 HKD per share, with a payout ratio of 45% [1]. - The manufacturing revenue for July 2024 showed a significant increase of 22% compared to the previous month, indicating a recovery in order growth [1]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 4.02 billion USD, a decrease of 3.4% year-on-year, while the net profit attributable to shareholders was 180 million USD, an increase of 120.6% [1]. - The gross profit margin was reported at 24.3%, up by 0.8 percentage points, and the net profit margin was 4.6%, an increase of 2.6 percentage points [1]. - The company’s total revenue for the first seven months of 2024 was 4.7 billion USD, down by 1.5% year-on-year, with manufacturing revenue increasing by 5% [1]. Operational Metrics - The total number of employees reached 277,000, with a slight increase of 0.1% year-on-year; manufacturing employees numbered 256,000, up by 1.3% [1]. - The average selling price of footwear decreased to 20.0 USD per pair, down by 7.8% [1]. - The manufacturing capacity utilization rate was reported at 90%, an increase of 15 percentage points year-on-year [1]. Market and Sales - The company’s footwear shipment volume for the first half of 2024 was 120.7 million pairs, an increase of 9.9% [1]. - Retail revenue for the first half of 2024 was 99.8 billion RMB (approximately 13.8 billion USD), a decrease of 8.9% year-on-year [1]. - The retail environment in mainland China is becoming increasingly volatile, with a 13% decrease in revenue from physical stores [1].
裕元集团：7月制造营收增长提速，股息具备吸引力