WEIXING(SZ:002003) Shanxi Securities·2025-10-14 07:08Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for investment [11]. Core Insights - The company, Weixing Co., is a leading manufacturer of apparel accessories in China, specializing in buttons, zippers, and other related products. It has established a strong global presence with production bases in various regions, including China and Southeast Asia [5][23]. - In 2024, the company achieved a revenue of 4.674 billion yuan, representing a year-on-year growth of 19.66%, and a net profit of 700 million yuan, up 25.48% from the previous year [5][11]. - The company has a significant market share in the zipper and button segments, with zippers accounting for 53.14% and buttons for 41.81% of its revenue in 2024 [5][11]. Summary by Sections Company Overview - Weixing Co. was founded in 1988 and has developed into a major player in the apparel accessories industry, with a production capacity of 12 billion buttons and 910 million meters of zippers annually [5][23]. - The company has a diversified customer base, including well-known domestic and international brands such as Bosideng, Anta, Nike, and Adidas [5][23]. Industry Analysis - The apparel accessories industry is experiencing steady growth, with the zipper market in China showing a compound annual growth rate (CAGR) of 5.4% from 2010 to 2015, although growth has slowed since then [6]. - China is the largest exporter of zippers globally, with a significant market share, and the competitive landscape is characterized by a few dominant players and many smaller firms [6][11]. Competitive Advantages - Weixing Co. has established several competitive advantages, including strong product development capabilities, rapid production response times, and a well-established global marketing network [10][11]. - The company invests over 100 million yuan annually in research and development, enhancing its ability to innovate and meet customer needs [10][11]. Financial Forecast and Valuation - The company is projected to achieve revenues of 4.882 billion yuan, 5.394 billion yuan, and 5.912 billion yuan for the years 2025, 2026, and 2027, respectively, with expected growth rates of 4.4%, 10.5%, and 9.6% [11][12]. - The estimated price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 17.9, 15.7, and 14.2, respectively, indicating a favorable valuation trend [11][12].