Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 80.4 CNY per share, compared to the current price of 65.10 CNY [1]. Core Views - The company's profitability continues to improve, and there is optimism regarding its medium to long-term growth potential [1]. - The company reported a revenue of 11.47 billion CNY for the first half of 2024, representing a year-on-year increase of 24.5%, with a net profit attributable to the parent company of 1.88 billion CNY, up 29.0% year-on-year [1]. - The report highlights a significant recovery in orders from U.S. clients, contributing to both volume and price increases [1]. Financial Performance Summary - Revenue Growth: The company achieved a revenue of 67.1 billion CNY in Q2 2024, a year-on-year increase of 20.8% [1]. - Profit Margins: The gross profit margin for H1 2024 was 28.2%, up 3.6 percentage points year-on-year, while the net profit margin was 16.4%, an increase of 0.6 percentage points [1]. - Cash Flow: The operating cash flow for H1 2024 was 1.72 billion CNY, a 24.1% increase year-on-year, indicating healthy cash flow management [1]. Sales and Market Dynamics - Sales Volume: The total sales volume for H1 2024 reached 108 million pairs, a rise of 18.6% year-on-year, with an average selling price (ASP) increase of 4.9% [1]. - Regional Performance: Revenue from the U.S. and Europe for H1 2024 was 9.93 billion CNY and 1.27 billion CNY, reflecting a year-on-year growth of 30.8% and a decline of 9.5%, respectively [1]. - Product Segmentation: Revenue from sports and leisure shoes, outdoor boots, and other categories showed year-on-year increases of 24.0%, 27.2%, and 31.2%, respectively [1]. Future Projections - The report forecasts net profits for the company to reach 3.854 billion CNY, 4.482 billion CNY, and 5.114 billion CNY for the years 2024, 2025, and 2026, respectively [2]. - The projected price-to-earnings (P/E) ratios for the upcoming years are 20, 17, and 15 times [2].
华利集团：2024年中报点评：盈利能力持续提升，看好公司中长期成长性