KORRUN(SZ:300577)2024-08-29 00:44Investment Rating - The report maintains an "Outperform" rating for the company [4][5]. Core Views - The company reported strong revenue growth in H1 2024, achieving revenue of 1.83 billion yuan, a year-on-year increase of 17.6%, and a net profit of 250 million yuan, a year-on-year increase of 230% [4][5]. - The consolidation of Shanghai Jiale contributed significantly to the profit growth, with a one-time gain of approximately 96.31 million yuan [4][5]. - The company's OEM business continues to grow robustly, while the brand business is undergoing short-term adjustments [4][5]. - The gross margin for the OEM business improved due to enhanced efficiency and cost reduction measures, with a gross margin of 23.9% in H1 2024, up 2.3 percentage points year-on-year [5][10]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 1.83 billion yuan, with a net profit of 250 million yuan, reflecting a significant increase compared to the previous year [4][6]. - The company expects net profits for 2024-2026 to be 380 million, 400 million, and 510 million yuan respectively, with corresponding PE ratios of 11, 11, and 9 [5][10]. Business Segments - The OEM manufacturing business generated revenue of 1.53 billion yuan in H1 2024, a year-on-year increase of 21.6%, accounting for approximately 84% of total revenue [4][5]. - The brand management business saw a slight decline in revenue, down 2.5% year-on-year, primarily due to weak domestic market demand [4][5]. Future Outlook - The integration of Shanghai Jiale is expected to provide new growth momentum for the company's OEM business, expanding its product categories into apparel and fabrics [5][6]. - The company is optimistic about the recovery of its brand business in the second half of 2024 as new products are launched [5][6].