Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is a leading global garment manufacturer with a diversified product range, including casual wear, denim, intimate apparel, knitwear, sportswear, and outdoor clothing. It has established a strong customer base and is expanding into the sports sector, which is expected to enhance growth potential [3][5][36]. - The company has a stable revenue and profit trajectory, with a projected increase in net profit from 1.41 billion RMB in 2024 to 1.95 billion RMB in 2026, reflecting a compound annual growth rate (CAGR) of 19% [1][15]. - The global apparel market is expected to grow steadily, with the sportswear segment projected to reach a retail market size of $407.42 billion by 2024, growing at a CAGR of 6.2% from 2014 to 2024 [26][28]. Company Overview - The company was founded in 1970 and is headquartered in Hong Kong, operating approximately 20 factories across Vietnam, China, Cambodia, Bangladesh, and Sri Lanka, with an annual production capacity exceeding 470 million pieces [5][6]. - The company has a concentrated ownership structure, with the founders holding 76.5% of the shares, ensuring stable control [12]. Financial Performance - In 2023, the company reported revenues of $2.177 billion, a decrease of 12.6% year-on-year, with a net profit of $164 million, down 5.3% year-on-year. However, the company is entering a recovery phase, with a projected revenue growth of 8.4% in the first half of 2024 [15][26]. - The company maintains a stable gross margin of around 19-20% since 2018, with net profit margins expected to improve due to operational efficiencies and cost control measures [16][20]. Industry Analysis - The global apparel industry is projected to reach a retail market size of $1.45 trillion by 2024, with a CAGR of 3.0% from 2014 to 2024. The sportswear segment is expected to grow significantly, indicating a favorable market environment for the company [26][28]. - The concentration of brands in the sportswear segment is significantly higher than in other categories, with the top 10 brands expected to account for 42.3% of the market by 2024 [28][31]. Strategic Focus - The company emphasizes a diversified product portfolio and a collaborative model with clients, enhancing customer loyalty and operational efficiency. It serves over 50 brands, including Uniqlo, H&M, and Gap, with a focus on expanding its sportswear client base [36][41]. - The company is actively pursuing vertical integration by acquiring upstream suppliers, which is expected to improve delivery capabilities and profitability [36][7].
晶苑国际（02232）深度报告：多元化布局打造强客户粘性，开拓运动赛道成长性提升