WEIXING(002003) 长江证券·2024-08-22 13:14Investment Rating - The investment rating for the company is "Buy" and is maintained [2]. Core Views - The company reported a revenue of 2.3 billion yuan for H1 2024, representing a year-on-year increase of 26%. The net profit attributable to the parent company and the net profit after deducting non-recurring gains and losses were 420 million yuan and 400 million yuan, respectively, reflecting increases of 38% and 34% year-on-year. In Q2 alone, revenue reached 1.5 billion yuan, up 32% year-on-year, with net profits of 340 million yuan and 330 million yuan, marking increases of 36% and 31% respectively. The performance exceeded expectations [3][4]. Summary by Sections Financial Performance - In H1 2024, the company's revenue from zipper and button segments grew by 24% and 27% year-on-year, respectively. Domestic and overseas revenues increased by 25% and 27% year-on-year. The capacity utilization rates for domestic and overseas production improved significantly, rising by 17% and 5% to 75% and 50%, respectively [3][4]. Profitability and Cost Management - The gross margins for zippers and buttons improved by 0.3 percentage points to 42.9% and 42.1%, respectively, despite some pressure from rising raw material costs. The management expense ratio decreased by 1.1 percentage points to 7.0%, attributed to cost reductions from smart production and a decrease in equity incentive expenses [3][4]. Future Outlook - The company expects to maintain double-digit growth in orders in the short term, with a strong growth outlook for 2024. For 2025, there is potential for further order increases following factory inspections by overseas brands. The company is focused on enhancing automation and expanding its customer base both domestically and internationally [3][4]. Dividend Policy - The company declared a mid-term dividend of 234 million yuan, with a payout ratio of 56% [3].