Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [7]. Core Insights - The company reported strong revenue and profit growth in Q3 2024, with revenue reaching 17.5 billion RMB, a year-on-year increase of 22.4%, and net profit of 2.84 billion RMB, up 24.3% year-on-year [4][6]. - The company is experiencing robust order recovery and high production capacity utilization, with a gross margin of 27.8%, reflecting a 2.5 percentage point increase year-on-year [6][7]. - The company has initiated capacity expansion with new factories in Vietnam and Indonesia, which is expected to accelerate production capabilities [6][7]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a revenue of 17.5 billion RMB, a 22.4% increase year-on-year, and a net profit of 2.84 billion RMB, reflecting a 24.3% growth [4][6]. - The gross margin for Q1-Q3 2024 was 27.8%, up 2.5 percentage points from the previous year, with a net profit margin of 16.0% [6][7]. Sales and Production - The company sold 163 million pairs of shoes in Q1-Q3 2024, a 20.36% increase year-on-year, with Q3 sales showing a 23.9% growth compared to the same period last year [5][6]. - The average selling price (ASP) for Q1-Q3 2024 was approximately 107 RMB, a slight increase of 1.7% year-on-year [5][6]. Capacity Expansion - New factories in Vietnam and Indonesia have commenced operations, contributing to the company's capacity expansion plans [6][7]. - The company is expected to continue expanding its production capabilities, with plans for additional factories in the near future [6][7]. Future Outlook - The company is projected to achieve net profits of 3.91 billion RMB, 4.52 billion RMB, and 5.26 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 21, 18, and 15 [7].
华利集团：24Q3收入、利润延续高增长，盈利水平维持高位