Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 16.00 HKD [1][9]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 426-440 million USD in 2024, representing a year-on-year growth of 55-60%. This growth is driven by a significant increase in order demand for manufacturing, improved capacity utilization, and enhanced production efficiency [3][4]. - The manufacturing business is experiencing a steady increase in revenue, while the retail business continues to face challenges due to the consumer environment. The company anticipates a revenue increase of 9.7% year-on-year in Q4 2024, with a net profit margin projected to be between 4.5% and 5.1% [4][5]. - The company has a strong position in the global sports shoe manufacturing sector and is the second-largest sports goods retailer in China. Its vertical integration allows for effective control over the supply chain, with a diverse and loyal customer base [5][6]. Summary by Sections Financial Performance - The company forecasts revenues of 8,187 million USD in 2024, with a growth rate of 4%. The net profit is expected to be 432 million USD, reflecting a 57% increase year-on-year [6]. - The diluted earnings per share are projected to be 0.27 USD in 2024, with a price-to-earnings (PE) ratio of 7.7 [6]. Business Segments - Manufacturing revenue is expected to grow steadily, with monthly revenue growth rates of 10.2%, 10.9%, and 11.1% observed [4]. - Retail revenue growth has been negative but shows signs of improvement, with a narrowing decline in monthly revenue [4][5]. Market Position - The company is well-positioned for long-term growth, with strong manufacturing barriers and an increasing market share anticipated [5].
裕元集团：盈利预告点评：24年归母净利同增55-60%，1月春节错期影响-20250213