Investment Rating - The report maintains a "Buy" rating for the company with a target price set at 64.4 HKD [7] Core Insights - The company reported a revenue of 12.2% growth year-on-year in 24H1, reaching 12.98 billion RMB, driven by increased market share among major clients and significant demand growth in mainland China and Japan [1] - The net profit attributable to shareholders increased by 37.8% year-on-year to 2.93 billion RMB, primarily due to higher capacity utilization and the expansion of overseas factories [1] - The company declared an interim dividend of 1.25 HKD per share, a 31.6% increase year-on-year, totaling approximately 1.71 billion RMB, which represents 58.5% of the net profit for 24H1 [1] Revenue Breakdown - Revenue from major clients shows significant variation: Client A contributed 3.4 billion RMB (34% growth), Client B 3.2 billion RMB (6% decline), Client C 2.3 billion RMB (24% growth), and Client D 1.3 billion RMB (stable) [2] - By product category, sportswear revenue was 9.21 billion RMB (8% growth), leisurewear 2.76 billion RMB (20% growth), underwear 0.9 billion RMB (47% growth), and other knitted products nearly 0.1 billion RMB (12% growth) [2] - Geographically, revenue from mainland China was 3.7 billion RMB (20% growth), EU 2.5 billion RMB (4% growth), Japan 2.1 billion RMB (27% growth), and the US 1.9 billion RMB (3% growth) [2] Profitability Metrics - The company's gross margin improved to 29%, an increase of 6.6 percentage points, while the net profit margin rose to 22.6%, up by 4.2 percentage points [3] - Selling and distribution expenses remained stable at 0.7% of revenue, while administrative expenses decreased by 0.6 percentage points to 7.3% of revenue [3] Capacity Expansion and Workforce - As of the end of 24H1, the company employed 18,000 staff at its new garment factory in Cambodia, with ongoing improvements in production efficiency [4] - The company is actively recruiting, having added approximately 2,200 employees at its Vietnam factory in the first half of the year [4] - The company is expanding its capacity in Vietnam and has acquired full ownership of a subsidiary in Vietnam to enhance fabric production capacity [4] Financial Forecast - The company expects continued growth in the second half of the year, with capacity utilization projected to remain at ideal levels [5] - Revenue forecasts for 2024-2026 are 28.76 billion RMB, 32.98 billion RMB, and 37.70 billion RMB, with net profits of 5.62 billion RMB, 6.51 billion RMB, and 7.32 billion RMB respectively [5]
申洲国际：份额持续提升，积极扩产招工