KORRUN(SZ:300577) Tai Ping Yang·2024-09-03 01:00Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative increase of over 15% compared to the CSI 300 index in the next six months [2][7]. Core Insights - The company reported a strong performance in its OEM business, with a revenue increase of 17.6% year-on-year to 1.83 billion yuan in H1 2024, and a net profit increase of 230% year-on-year to 250 million yuan [3]. - The acquisition of Shanghai Jiale contributed significantly to the earnings, with a one-time gain of 96.31 million yuan recognized during the acquisition [3]. - The company's gross margin improved by 2.3 percentage points to 23.94% in H1 2024, driven by enhanced production efficiency and cost reduction efforts [3]. Summary by Sections Financial Performance - H1 2024 revenue reached 1.83 billion yuan, up 17.6% year-on-year, while net profit was 250 million yuan, reflecting a 230% increase [3]. - Q2 2024 revenue was 920 million yuan, a 12.8% year-on-year increase, with net profit soaring by 341% to 180 million yuan [3]. Business Segments - OEM business revenue grew by 21.6% to 1.53 billion yuan, with bag and apparel segments contributing 1.255 billion yuan and 273 million yuan respectively [3]. - Brand business revenue decreased by 2.5% to 281 million yuan, with online sales increasing by 25.2% while distribution channel sales fell by 11.1% [3]. Acquisition Impact - The acquisition of Jiale, which now holds 51.85% of the company, is expected to enhance revenue and profit through improved production efficiency and capacity release [3]. - Jiale's revenue in H1 2024 was 640 million yuan, up 17.3% year-on-year, with net profit increasing by 168% to 21 million yuan [3]. Future Outlook - The company is positioned as a leader in the bag OEM sector and aims to develop its apparel OEM business as a second growth driver [3]. - Projected net profits for 2024, 2025, and 2026 are 390 million yuan, 402 million yuan, and 500 million yuan respectively, with corresponding PE ratios of 12, 12, and 10 times [5].