BROS(SH:601339) Shenwan Hongyuan Securities·2025-08-17 14:41Investment Rating - The report upgrades the investment rating of the company from "Outperform" to "Buy" [1] Core Views - The company reported better-than-expected profits due to improved capacity utilization and lower raw material costs, with a significant increase in net profit for the first half of 2025 [6][12] - The company benefits from a high proportion of overseas production capacity, particularly in Vietnam, which enhances its profitability compared to domestic operations [6] - The report anticipates a rebound in cotton prices, which could further improve the company's profit margins [6] - The company plans to distribute a mid-term cash dividend of 0.15 yuan per share, reflecting a high dividend payout ratio [6] Financial Data and Profit Forecast - Total revenue for 2025 is projected at 7,980 million yuan, with a year-on-year growth rate of 0.5% [5] - The net profit attributable to the parent company is expected to reach 702 million yuan in 2025, representing a year-on-year increase of 71.1% [5] - The gross profit margin is forecasted to improve to 16.8% in 2025 [5] - The company’s return on equity (ROE) is expected to rise to 7.1% in 2025 [5] Market Data - As of August 15, 2025, the closing price of the company's stock is 5.60 yuan, with a market capitalization of 8,398 million yuan [1] - The stock has a price-to-earnings (PE) ratio of 20 for 2024, which is expected to decrease to 12 in 2025 [5][16] - The company’s dividend yield is 4.64%, based on the most recent dividend announcement [1]