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裕元集团(00551):制造业务稳健增长但零售端承压,保持审慎的库存与折扣管理

Investment Rating - The report maintains a cautious outlook on Yue Yuen Industrial Holdings, reflecting the challenges faced in the retail segment while acknowledging steady growth in manufacturing [2][10]. Core Insights - Yue Yuen's manufacturing business showed resilience with a revenue increase of 6.2% year-on-year, reaching USD 2.798 billion, while retail revenue fell by 8.6% to USD 1.262 billion [2][10]. - The company is focusing on prudent inventory and discount management to balance profitability and channel health, with inventory turnover days at 146 days [4][12]. - The management has emphasized a refined retail strategy and diversification of channels, particularly enhancing online sales which grew by 16% year-on-year [3][11]. Summary by Sections Financial Performance - In 1H2025, total revenue was USD 4.06 billion, a 1.1% increase year-on-year, with manufacturing revenue at USD 2.798 billion and retail revenue at USD 1.262 billion [2][10]. - The average selling price for footwear increased by 3.2% to USD 20.61 per pair, benefiting from a premium order mix [2][10]. Retail Strategy - Pou Sheng International's omni-channel revenue grew significantly, driven by online sales, which doubled due to live-streaming initiatives [3][11]. - The company plans to maintain its offline store count between 3,300 and 3,500 while focusing on enhancing single-store efficiency [3][11]. Inventory and Cost Management - The management is implementing measures such as production cuts and clearance sales to control inventory levels, with nearly 9% of inventory being aged [4][12]. - The gross profit margin for manufacturing decreased to 17.7%, impacted by rising labor costs and uneven capacity utilization [2][10]. Capacity Expansion and Tariff Strategy - The company is optimizing its capacity layout and expanding production in Indonesia and India to mitigate tariff impacts, with a projected capital expenditure of around USD 300 million for factory construction [5][13].