Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of USD 8.182 billion for 2024, reflecting a year-on-year growth of 4%, and a net profit attributable to shareholders of USD 392 million, which is a significant increase of 43% [3][5] - The manufacturing business is operating at full capacity, with an increase in operational efficiency leading to a gross margin rise [3] - The retail segment is experiencing a decline in physical store sales but shows strong growth in online sales, contributing to an overall improvement in gross margin [3] - The company is the largest sports shoe manufacturer globally and has a strong presence in the sports retail sector, indicating a robust position in the industry [3] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: USD 7.890 billion - 2024: USD 8.182 billion - 2025E: USD 8.654 billion - 2026E: USD 9.082 billion - 2027E: USD 9.464 billion - Net profit attributable to shareholders is forecasted to grow from USD 275 million in 2023 to USD 489 million in 2025E, and further to USD 592 million by 2027E [3][12] - The earnings per share (EPS) is expected to increase from 17.05 cents in 2023 to 30.49 cents in 2025E [3][12] Operational Efficiency - The manufacturing business achieved a capacity utilization rate of 93% in 2024, up from 79% in FY23, contributing to a gross margin increase of 0.7 percentage points to 19.9% [3] - The retail business saw a decline in physical store sales but a 16% increase in online sales, leading to a gross margin improvement of 0.5 percentage points to 34.2% [3] Dividend Policy - The company proposed a final dividend of HKD 0.9 per share, resulting in a total annual dividend of approximately HKD 1.3 per share, with a payout ratio of 69% and a dividend yield of about 10% [3]
裕元集团（00551）：制造业利润弹性释放，零售业务静待回暖