Investment Rating - The report does not explicitly state an investment rating for the company, but it indicates a positive outlook for revenue growth and profitability potential, suggesting a favorable investment perspective [4][7]. Core Insights - The company reported a 17.6% year-on-year increase in manufacturing revenue for Q1 2024, reaching $326 million, with shipment volume up 21.9% to 11.7 million pairs, although the average selling price (ASP) decreased by 3.5% to $27.8 per pair [3][4]. - The demand outlook is positive, with non-sport categories experiencing high demand and capacity utilization, particularly in the leisure segment, which is expected to support revenue growth despite ASP pressures [4][7]. - The company's competitive advantage lies in its high-end footwear ODM capabilities, benefiting from improved industry conditions and a strong client mix, including luxury and fashion brands [4][7]. Financial Performance Summary - Sales Revenue: $1,493 million in 2023, with a year-on-year decline of 8.5% [2]. - Gross Margin: Improved to 24.6% in 2023 from 21.6% in 2022 [2]. - Net Profit: $141.1 million in 2023, reflecting a year-on-year growth of 20.4% [2]. - Earnings Per Share: Increased to $0.18 in 2023 from $0.15 in 2022 [2]. Future Outlook - The company anticipates unit sales growth in 2024, with potential for margin expansion driven by a favorable product mix and capacity expansion plans, including new factories in Indonesia and Bangladesh [4][7]. - The report highlights the company's strong R&D capabilities, which are expected to create value for high-end clients, contributing to sustainable profitability [4][7]. Competitive Position - The company maintains a strong position in the ODM market, with the highest ASP in the industry, and has been successful in attracting high-value clients such as Balenciaga and Lacoste [4][7]. - The report notes that the company's operational management differs from mass-market manufacturers, enhancing its competitive edge [4][7]. Valuation - The company is considered a high-dividend stock with a reasonable valuation, with an estimated PE ratio of approximately 9 times for 2024 [4][7].
24Q1出货优秀，盈利能力有望持续受益品类组合提升