Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at HKD 15.73, indicating a potential upside of 10%-20% over the next six months [4]. Core Insights - The company reported a revenue growth of 0.7% to USD 775 million in 25H1, driven primarily by a 3.8% increase in shipment volume to 27.5 million pairs, largely attributed to the sports category [1][2]. - The average selling price of footwear decreased by 3.2% to USD 27.4 per pair, influenced by a higher proportion of lower-priced sports product orders [1]. - The sports category sales increased by 8.2%, accounting for 48.5% of total manufacturing revenue, benefiting from increased shipments to major sports clients and successful collaborations with new clients [1][2]. - The company is currently facing temporary gross margin pressures due to operational efficiency issues during capacity expansions in Indonesia and the Philippines [2][8]. - The adjusted net profit for 25H1 was USD 77.9 million, down from USD 92.9 million in the previous year, with an adjusted net profit margin of 10.1% [3][9]. Summary by Sections Financial Performance - In 25H1, gross profit decreased by 11.9% to USD 175 million, with a gross margin of 22.6%, down from 25.8% in the previous year [2]. - Operating profit fell by 14.5% to USD 84.7 million, resulting in an operating profit margin of 10.9% [2][3]. Market and Product Strategy - North America and Europe are the company's largest markets, contributing 48.7% and 23.4% to revenue, respectively [2]. - The company is optimizing its product mix and expanding its customer base as part of its three-year plan (2023-2025), aiming for a 10% operating profit margin and low double-digit growth in after-tax profit [4][8]. Future Outlook - The company plans to expand its total capacity by 20 million pairs and enhance its handbag and accessories manufacturing business as part of its next three-year plan (2026-2028) [8].
九兴控股（01836）：扩充海外基地优化客户组合