KORRUN(SZ:300577) HUAXI Securities·2025-09-22 15:22Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company plans to acquire an additional 20% stake in Shanghai Jiale, increasing its total ownership to 81.4%, which is expected to enhance performance in Q4 2025 [2] - The company has announced the early termination of a share reduction plan by its controlling shareholder, which is seen as a positive market signal [2] - The company is expected to experience significant profit growth in Q3 due to improved net margins and accelerated revenue growth in the second half of the year [3] Financial Projections - Revenue forecasts for 2025, 2026, and 2027 have been adjusted to 52.38 billion, 60.02 billion, and 68.74 billion CNY respectively, down from previous estimates [5] - Net profit forecasts for the same years have been revised to 4.28 billion, 5.73 billion, and 6.92 billion CNY [5] - The earnings per share (EPS) estimates have been adjusted to 1.78, 2.39, and 2.89 CNY for 2025, 2026, and 2027 respectively [5] Business Growth Drivers - The company's 2B bag manufacturing business is projected to achieve double-digit growth in 2025, with net margin recovery expected from improved capacity utilization and reduced foreign exchange impacts [4] - The 2C business is anticipated to benefit from changes in the profit-sharing model with Xiaomi, leading to improved profit margins [4] - The acquisition of Shanghai Jiale opens up a larger market in garment manufacturing, creating a second growth curve for the company [4] Financial Summary - The company reported a revenue of 3,105 million CNY in 2023, with projections of 4,240 million CNY in 2024 and 5,238 million CNY in 2025, reflecting a year-on-year growth of 13.3% and 36.6% respectively [7] - The net profit for 2023 was 116 million CNY, with projections of 381 million CNY in 2024 and 428 million CNY in 2025, indicating a significant year-on-year increase of 146.5% and 12.3% respectively [7] - The gross margin is expected to stabilize around 22.9% in 2024 and 22.8% in 2025 [7]