裕元集团（00551）：制造业务收入和盈利均环比改善，零售业务受同店销售及费用影响仍承压

Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company achieved revenue of 4.06 billion USD in H1 2025, a year-on-year increase of 1.1%, with a net profit attributable to shareholders of 170 million USD, down 7.2% year-on-year [2][4]. - The manufacturing business reported revenue of 2.80 billion USD, up 6.2% year-on-year, and a net profit of 160 million USD, down 0.2% year-on-year. Conversely, the retail segment, represented by Bao Sheng International, saw revenue of 1.26 billion USD, down 8.6% year-on-year, and a net profit of 30 million USD, down 44.3% year-on-year [2][4]. - The company declared an interim dividend of 0.4 HKD per share, with a payout ratio of 48% [2][4]. Summary by Sections Manufacturing Business - The manufacturing segment showed robust growth with a Q2 revenue of 1.47 billion USD, up 6.5% year-on-year, and a net profit of 90 million USD, up 29.2% year-on-year. The output volume increased by 4.7% year-on-year, and the average selling price rose by 3.9% year-on-year [7]. - The capacity utilization rate improved to 95%, although there were regional disparities in capacity load and rising labor costs, leading to a slight decrease in gross margin [7]. Retail Business - The retail segment faced challenges with Bao Sheng International reporting a Q2 revenue decline of 11.1% year-on-year and a net profit drop of 69.2% year-on-year. The company closed 40 stores in H1 2025, with same-store sales declining significantly [7]. - Despite a slight improvement in discount rates, the increase in selling, general and administrative expenses led to a decrease in net profit margin [7]. Future Outlook - The manufacturing business is expected to benefit from the ramp-up of production capacity in Indonesia and new capacity in India, which may help address regional capacity imbalances [7]. - The retail business is under pressure in the short term, but a multi-channel operation and diversified brand strategy may drive future growth [7]. - The projected net profits for 2025-2027 are 360 million USD, 400 million USD, and 450 million USD, respectively, with corresponding P/E ratios of 8, 7, and 6 [9].