Core Viewpoint - The company has achieved revenue and profit growth in the first half of 2025 despite external environmental disturbances, demonstrating operational resilience [1][2] Financial Performance - In H1 2025, the company reported revenue of $1.229 billion, a year-on-year increase of 12.42%, with a gross profit of $243 million, up 13.66%, and a net profit attributable to shareholders of $98 million, reflecting a 16.97% increase [1] - The gross margin and net profit margin for H1 2025 were 19.73% and 7.99%, respectively, showing slight improvements of 0.22 percentage points and 0.31 percentage points year-on-year [1] - The selling and administrative expense ratios were 1.31% and 7.64%, respectively, both showing minor improvements compared to H1 2024 [1] - The company plans to distribute an interim dividend of 16.3 Hong Kong cents per share, with a payout ratio of 60%, indicating a strong willingness to return capital to shareholders [1] Product Performance - By product category, knitwear revenue reached $105 million, a significant year-on-year increase of 29.21%, while casual wear, sportswear, outdoor wear, and denim wear saw revenue growth of 11.37%, 12.44%, and 10.31%, respectively [1] - The gross margins for casual wear and intimate apparel improved by 0.7 percentage points and 1.3 percentage points to 20.50% and 20.80%, respectively, driven by enhanced production efficiency [1] - The decline in knitwear gross margin was attributed to an increase in sales of lower-margin regular styles [1] Regional Performance - In H1 2025, revenue growth in the Asia-Pacific and other regions was notably high at 14.50% and 14.94%, while North America experienced a stable growth of 11.67% [1] Strategic Advantages - The company faces tariff challenges due to its significant revenue exposure to the U.S. market, but it has three core advantages to mitigate these impacts: 1. FOB revenue structure where all production costs are borne by customers [2] 2. Pricing advantage with brand clients, as the retail prices of products significantly exceed the FOB prices, reducing tariff impact [2] 3. Overall industry resilience, with steady growth in brand clients despite external factors [2] Future Outlook - The company is expected to continue benefiting from its deep-rooted partnerships with premium brand clients and its recent entry into the sports and outdoor apparel sector, which is anticipated to contribute to performance growth [2] - Forecasted net profits for 2025-2027 are $242 million, $287 million, and $337 million, representing year-on-year growth rates of 20.83%, 18.41%, and 17.32%, respectively [2]

Core Viewpoint - The company reported strong mid-year performance for 2025, with revenue and net profit growth aligning with expectations [1][2] Group 1: Financial Performance - In H1 2025, the company achieved revenue of $1.229 billion, a year-on-year increase of 12.4% [1] - The net profit for the same period was $98.32 million, reflecting a year-on-year growth of 16.8% [1] - The gross margin improved by 0.2 percentage points to 19.7% [2] Group 2: Product Performance - Revenue by product showed significant growth: - Casual wear: $340 million (+11.4%) - Sports and outdoor wear: $313 million (+12.4%) - Denim: $262 million (+10.3%) - Underwear: $210 million (+9.5%) - Sweaters: $105 million (+29.2%) [1] Group 3: Regional Performance - Revenue by region was as follows: - Asia-Pacific: $478 million (+14.5%) - North America: $463 million (+11.7%) - Europe: $253 million (+9.7%) - Other regions: $36 million (+14.9%) [1] Group 4: Cost Management - The company reduced its expense ratio by 0.5 percentage points to 10.8% [2] - Specific expense rates included: - Selling expenses: 1.3% (unchanged) - Administrative expenses: 7.6% (-0.3%) - R&D expenses: 1.3% (-0.1%) - Financial expenses: 0.5% (-0.03%) [2] Group 5: Dividend Policy - The board announced an interim dividend of 16.3 Hong Kong cents per share, with a payout ratio of 60% [2] Group 6: Investment Outlook - The company is positioned as a leading apparel manufacturer, with expectations for continued growth in market share among new clients in the sports sector [2] - Profit forecasts for 2025-2027 are projected at $1.68 billion, $1.95 billion, and $2.23 billion, representing year-on-year growth of 16%, 16%, and 14% respectively [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved revenue and profit growth in H1 2025, demonstrating operational resilience despite external disruptions [8] - The company has three core advantages that help mitigate the impact of tariffs: FOB revenue structure, pricing advantage with brand clients, and overall industry resilience [8] - The company is expected to continue benefiting from its strong partnerships with quality brand clients and expanding into the sports and outdoor apparel sector, leading to significant growth potential [8] Financial Performance Summary - In H1 2025, the company reported revenue of $1.229 billion, a year-on-year increase of 12.42%, and a gross profit of $243 million, up 13.66% year-on-year [8] - The net profit attributable to shareholders for H1 2025 was $98 million, reflecting a year-on-year growth of 16.97% [8] - The gross margin and net margin for H1 2025 were 19.73% and 7.99%, respectively, showing slight improvements compared to the previous year [8] - The company expects to pay an interim dividend of 16.3 HKD cents per share, with a payout ratio of 60% [8] Revenue and Profit Forecast - Revenue projections for the company are as follows: $2.780 billion in 2025, $3.106 billion in 2026, and $3.449 billion in 2027, with year-on-year growth rates of 12.58%, 11.71%, and 11.06% respectively [7] - Net profit forecasts are $242 million in 2025, $287 million in 2026, and $337 million in 2027, with year-on-year growth rates of 20.83%, 18.41%, and 17.32% respectively [7] - The company’s earnings per share are projected to be $0.08 in 2025, $0.10 in 2026, and $0.12 in 2027 [7] Operational Efficiency - The company has improved production efficiency, leading to increased gross margins for casual and intimate apparel, with respective margins of 20.50% and 20.80% in H1 2025 [8] - The company’s sales and management expense ratios improved slightly to 1.31% and 7.64% in H1 2025, respectively [8] Market Position - The company has a strong market presence in the Asia-Pacific region, with revenue growth of 14.50% in H1 2025, and stable growth in North America at 11.67% [8]