Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [4][14]. Core Views - The company reported a revenue of 17.5 billion with a year-on-year growth of 22% and a net profit of 2.8 billion, also reflecting a 24% increase year-on-year for the first three quarters of 2024 [1]. - The gross margin improved to 27.8%, up by 2.5 percentage points, while the net margin increased to 16.2%, showing a slight rise of approximately 0.2 percentage points [1]. - The company is expanding its production capacity in Indonesia, with plans for two factories expected to produce 50-60 million pairs of shoes annually, which will gradually commence operations [1]. - The company is optimistic about its collaboration with Adidas, which is anticipated to enhance business scale and profitability [2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 6 billion, marking a 19% increase, and a net profit of 960 million, which is a 16.1% year-on-year growth [4]. - The company has adjusted its FY25 revenue growth guidance to 12%, up from the previous estimate of 10%, and operating profit margin guidance to 20-20.5% from 19.5-20% [2]. - The company expects EPS for 2024, 2025, and 2026 to be 3.33, 3.80, and 4.24 respectively, with corresponding P/E ratios of 20.77, 18.21, and 16.31 [5][6]. Production and Capacity Expansion - The company is focusing on building a significant production base in Indonesia, with plans to establish several factories in the next 3-5 years, while currently relying on its main production base in Vietnam [1]. - The choice of factory locations considers factors such as labor availability, shipping logistics, and the local business environment [1]. Market Position and Client Relationships - The company is actively expanding its client base and has made progress in its partnership with Adidas, which is expected to validate the company's manufacturing capabilities and enhance its market position [2].
华利集团：核心客户Deckers靓丽，期待Adidas增量