Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company has achieved double-digit revenue growth in the first half of 2025, with a revenue of 12.661 billion yuan, representing a year-on-year increase of 10.36%. However, the net profit has declined by 11.06% to 1.671 billion yuan [1][2] - The company has a rich resource of well-known sports shoe clients, with strong design and rapid response capabilities as core advantages, enhancing its competitive position in the market [3] - The new factories in Southeast Asia and China have achieved mass production, with improved gross margins in Q2 compared to Q1, indicating a positive trend in operational efficiency [4] Financial Summary - Revenue is projected to grow from 20.114 billion yuan in 2023 to 34.255 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 13% [1] - The net profit is expected to increase from 3.2 billion yuan in 2023 to 4.949 billion yuan in 2027, with fluctuations in growth rates, including a projected decline in 2025 [1] - The company's gross margin for the first half of 2025 was 21.85%, down 6.38 percentage points year-on-year, while the net margin was 13.20%, down 3.17 percentage points [2] - The earnings per share (EPS) is forecasted to be 3.01 yuan in 2025, 3.60 yuan in 2026, and 4.24 yuan in 2027, with corresponding price-to-earnings (P/E) ratios of 18.1X, 15.1X, and 12.9X respectively [9]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5][4] Core Views - The company is expected to achieve a revenue of 24 billion in 2024, representing a 19% year-on-year growth, with a net profit of 3.8 billion, also reflecting a 20% increase [1] - The company has established a strong customer base, including major global sports brands such as Nike and Adidas, which supports its stable growth [2] - The company is expanding its production capacity with new factories in Vietnam and Indonesia, enhancing its competitive edge in the market [1][3] Financial Performance - In Q4 2024, the company reported revenues of 6.5 billion, a 12% increase year-on-year, and a net profit of 1 billion, up 9% [1] - The gross margin for 2024 is projected to be 26.8%, an increase of 1.2 percentage points, while the net margin is expected to be 16%, up 0.1 percentage points [1] - The company’s earnings per share (EPS) for 2024 is estimated at 3.29, with projections of 3.76, 4.44, and 5.17 for 2025 to 2027 respectively [4][9] Production and Cost Advantages - The company benefits from a complete manufacturing chain, which helps in maintaining product quality and reducing overall production costs [3] - Automation in production processes is being implemented to enhance efficiency and lower manufacturing costs [3] - The company’s scale of operations allows for significant cost savings in raw material procurement and production expenses [3] Customer Base and Market Position - The company has begun collaboration with Adidas, starting mass production in September 2024, further solidifying its position as a key supplier for major brands [2] - The top five customers account for a significant portion of the company's revenue, with the largest customer contributing 33% of sales [1]