WEIXING(SZ:002003) Shenwan Hongyuan Securities·2025-08-24 13:43Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a slight decline in profit due to high expenses, but increased capacity is expected to support long-term growth [7] - The company is in a critical phase of global market expansion, with upfront investments in sales and management expenses anticipated to yield benefits as sales scale up [7] - The international business is growing faster than domestic operations, with significant contributions from new production capacities in Vietnam [7] Financial Data and Profit Forecast - Total revenue for 2025 is projected at 48.72 billion yuan, with a year-on-year growth rate of 4.2% [6] - The net profit attributable to the parent company is expected to be 7.07 billion yuan in 2025, reflecting a slight increase of 0.9% year-on-year [6] - The gross margin is forecasted to be 42.6% in 2025, with a return on equity (ROE) of 15.8% [6] Business Performance - In the first half of 2025, the company achieved revenue of 23.38 billion yuan, a year-on-year increase of 1.8%, while net profit was 3.69 billion yuan, down 11.2% [7] - The company plans to distribute a cash dividend of 1 yuan per share, totaling 117 million yuan, with a payout ratio of 32% [7] - The gross margin for the first half of 2025 was 42.9%, an increase of 1.1 percentage points year-on-year [7] Market and Capacity Expansion - The company is expanding its domestic and international production capacities to enhance its competitive advantage [7] - Domestic production capacity is being increased with significant investments in new facilities, while the overseas production base in Vietnam is expected to contribute to rapid growth [7] - The total production capacity for buttons and zippers reached 6.3 billion pieces and 485 million meters, respectively, with a capacity utilization rate of 65.3% [7]