KORRUN(SZ:300577) KAIYUAN SECURITIES·2024-08-28 03:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a high non-recurring net profit margin in Q2, with a one-time gain from the acquisition of Jiale enhancing profits [4][7] - The revenue for H1 2024 reached 1.831 billion yuan, a year-on-year increase of 17.6%, while the net profit attributable to shareholders was 248 million yuan, up 230.15% [4][7] - The acquisition of Jiale is expected to significantly improve profitability and operational efficiency in the future [4][16] Financial Summary - Revenue and Profitability: - H1 2024 revenue was 1.831 billion yuan, with a net profit of 248 million yuan [4][7] - The non-recurring net profit for H1 2024 was 159 million yuan, reflecting an 85% increase [4][7] - The company expects net profits for 2024-2026 to be 400 million, 420 million, and 530 million yuan respectively [4][16] - Margins and Ratios: - The gross margin for H1 2024 was 23.94%, an increase of 2.27 percentage points [12][13] - The net profit margin for H1 2024 was 13.55%, up 8.7 percentage points [12][13] - The company’s P/E ratios for 2024-2026 are projected to be 10.9, 10.4, and 8.1 respectively [4][16] Business Segments - B2B Business: - B2B revenue for H1 2024 was 1.53 billion yuan, a year-on-year increase of 21.6% [9][12] - The gross margin for B2B was 23.71%, benefiting from improved client and product structure [12][13] - B2C Business: - B2C revenue for H1 2024 was 280 million yuan, a slight decline of 2.47% due to weak domestic consumption [10][12] - Online sales increased by 25.18%, while distribution revenue decreased by 11.1% [10][12] Operational Capacity - The company has a total production capacity of 21.316 million units, with a utilization rate of 91.24% [14] - The overseas production capacity accounts for 66.16% of total capacity, with significant operations in India and Indonesia [14] Future Outlook - The company anticipates significant cash flow improvement in Q3 2024 due to the integration of Jiale and operational efficiencies [14][16] - The expansion into the apparel sector is expected to provide additional growth opportunities [4][16]