Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company reported a revenue of $6.075 billion for the first three quarters of 2024, a year-on-year increase of 1.5%, with a gross margin of 24.2% and a net profit attributable to shareholders of $332 million, reflecting a significant year-on-year increase of 140.9% [2]. - The manufacturing segment showed strong performance with a revenue of $4.136 billion, up 9.0% year-on-year, driven by increased demand for footwear products [2]. - The retail segment faced challenges with a revenue decline of 11.6% year-on-year, but effective cost control measures helped improve profitability [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of $2.060 billion, a 12.5% increase year-on-year, with a gross margin of 24.1% [2]. - The net profit for Q3 2024 was $147 million, up 172.3% year-on-year [2]. - The overall net profit margin for the first three quarters was 5.5%, an increase of 3.2 percentage points year-on-year [2]. Manufacturing Business - The manufacturing business maintained a high capacity utilization rate of 92%, significantly up from 76% in the previous year [2]. - The footwear shipment volume increased by 16.2% year-on-year, although the average selling price decreased by 6.8% to $20.24 per pair [2]. - The net profit attributable to shareholders from the manufacturing segment was $302 million for the first three quarters, reflecting a year-on-year increase of 174.2% [2]. Retail Business - The retail segment's revenue was 139.84 billion RMB, down 9.5% year-on-year, with a notable decline in foot traffic in physical stores [2]. - The gross margin for the retail business improved to 34.0%, a year-on-year increase of 0.9 percentage points [2]. - The operating profit margin for the retail segment was 3.7%, up 0.4 percentage points year-on-year [2]. Future Projections - The company expects revenues of $8.441 billion, $8.834 billion, and $9.256 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 7.0%, 4.7%, and 4.8% [2]. - Projected net profits for the same years are $448 million, $482 million, and $535 million, with growth rates of 63.0%, 7.6%, and 11.0% [2]. - The price-to-earnings ratio (P/E) is projected to be 8, 8, and 7 for the next three years, indicating a favorable valuation [2].
裕元集团：24Q3制造业务淡季不淡，毛利率及归母净利率同比提升明显