KORRUN(300577) 太平洋·2024-11-04 02:18Investment 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 [1][8]. Core Views - The company reported a revenue of 3.025 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 32.48%. The net profit attributable to shareholders was 321 million RMB, up 164.63% year-on-year [3]. - The third quarter of 2024 saw a revenue of 1.193 billion RMB, a year-on-year increase of 64.36%, and a net profit of 72 million RMB, up 57.52% year-on-year [3]. - The company is experiencing strong growth in its bag manufacturing segment, with a 28% increase in revenue for Q3 2024 compared to Q3 2023, driven by major clients, particularly in the sports sector [3]. - The apparel manufacturing segment saw a revenue increase of over 400% to 380 million RMB in Q3 2024, primarily due to the consolidation of Jia Le's financials [3]. - The brand business also showed growth, with a revenue increase of over 12% in Q3 2024, including a 20%+ growth for the Xiaomi brand [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 3.025 billion RMB, with a net profit of 321 million RMB. The third quarter alone contributed 1.193 billion RMB in revenue and 72 million RMB in net profit [3]. - The company plans to distribute a cash dividend of 1.46 RMB per 10 shares, indicating a potential increase in the annual dividend payout ratio [3]. Business Segments - Bag manufacturing revenue increased by 28% in Q3 2024, while apparel manufacturing revenue surged over 400% due to the integration of Jia Le [3]. - The brand business reported a revenue growth of over 12%, with notable performance from the Xiaomi brand [3]. Profitability Metrics - The gross margin for Q3 2024 decreased by 3.2 percentage points to 22.0%, primarily due to the higher proportion of lower-margin apparel manufacturing revenue [3]. - The net profit margin for Q3 2024 was 6.1%, down 0.3 percentage points year-on-year, influenced by increased foreign exchange losses [3]. Future Outlook - The company is positioned as a leader in bag manufacturing and is expanding into apparel manufacturing to create a second growth curve. The report anticipates continued revenue and profit growth driven by operational flexibility and market expansion [3]. - The projected net profits for 2024, 2025, and 2026 are 401 million RMB, 412 million RMB, and 515 million RMB, respectively, with corresponding PE ratios of 13.4, 13.1, and 10.5 [5].