Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a significant profit growth driven by a recovery in gross margin and continuous improvement in overseas efficiency [1] - The revenue for the first half of 2024 reached 12.98 billion yuan, a year-on-year increase of 12.2%, with a gross profit of 3.76 billion yuan, up 45.0% year-on-year [1] - The company declared an interim dividend of 1.25 HKD per share, with a payout ratio of 58.5% [1] Revenue Breakdown - By product category, revenue for sports, leisure, underwear, and other knitted products in the first half of 2024 was 9.21 billion, 2.76 billion, 0.90 billion, and 0.10 billion yuan, respectively, with year-on-year growth rates of 7.6%, 20.0%, 47.4%, and 12.2% [2] - By region, revenue from mainland China, Europe, Japan, the United States, and other regions was 3.72 billion, 2.53 billion, 2.12 billion, 1.88 billion, and 2.73 billion yuan, with year-on-year growth rates of 20.0%, 4.4%, 27.0%, 2.7%, and 7.4% [2] - The top four customers contributed revenues of 3.40 billion, 3.24 billion, 2.33 billion, and 1.34 billion yuan, with year-on-year changes of +33.9%, -6.5%, +23.8%, and flat [2] Gross Margin and Expense Ratio - The gross margin for the first half of 2024 was 29.0%, an increase of 6.6 percentage points year-on-year, attributed to improved capacity utilization and enhanced production efficiency at overseas factories [3] - The selling, general, and administrative expense ratios were 0.65%, 7.27%, and 1.47%, respectively, with year-on-year changes of -0.05, -0.63, and +0.21 percentage points [3] - The net profit margin was 22.6%, up 4.2 percentage points year-on-year, although the increase was less than that of the gross margin due to reduced foreign exchange gains and government subsidies [3] Overseas Capacity and Efficiency - As of the end of the first half of 2024, the total number of employees in the group was 102,000, up from 92,000 at the end of 2023, with the new garment factory in Cambodia reaching its planned employee count of 18,000 [4] - The company acquired a new factory in Vietnam to further expand fabric production capacity, enhancing support for overseas garment factories [4] Profit Forecast and Valuation - The company expects revenues of 27.73 billion, 30.75 billion, and 33.99 billion yuan for 2024 to 2026, with year-on-year growth rates of 11.1%, 10.9%, and 10.6% [5] - The forecasted net profit for the same period is 6.03 billion, 6.76 billion, and 7.57 billion yuan, with year-on-year growth rates of 32.4%, 12.1%, and 11.9% [5] - The corresponding price-to-earnings ratios are projected to be 15, 13, and 12 times [5]
申洲国际：点评报告：毛利率修复带来亮眼利润，海外效率持续提升