Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The new factory ramp-up meets expectations, contributing to improved quarterly gross profit, with a year-to-date revenue growth of 6.67% [5][7] - The company achieved a revenue of 18.68 billion yuan in the first three quarters, with a gross margin of 21.96%, showing a slight increase from the first half of the year [7] - The company is positioned as a leading player in the sports footwear OEM sector in China, benefiting from short-term demand recovery and long-term capacity expansion [7] Financial Summary - Revenue projections for 2023 to 2027 are as follows: 20,114 million yuan in 2023, 24,006 million yuan in 2024, 26,929 million yuan in 2025, 30,414 million yuan in 2026, and 34,739 million yuan in 2027, with growth rates of -2.21%, 19.35%, 12.18%, 12.94%, and 14.22% respectively [6] - Net profit attributable to the parent company is forecasted to be 3,200 million yuan in 2023, 3,840 million yuan in 2024, 3,515 million yuan in 2025, 4,187 million yuan in 2026, and 4,977 million yuan in 2027, with growth rates of -0.86%, 20.00%, -8.46%, 19.12%, and 18.85% respectively [6] - The company’s earnings per share (EPS) are projected to be 2.74 yuan in 2023, 3.29 yuan in 2024, 3.01 yuan in 2025, 3.59 yuan in 2026, and 4.26 yuan in 2027 [6] Market Performance - The company’s sales volume of sports shoes reached 168 million pairs, with a year-on-year increase of 3.04%, maintaining steady growth despite a high base in 2024 [7] - The average selling price (ASP) of products increased by 0.99% compared to the first half of the year, contributing to revenue stability [7] - The company is expected to benefit from structural changes in customer demand and new brand collaborations, which will drive ASP upward [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company demonstrated operational resilience with a revenue growth of 10.36% year-on-year in the first half of 2025, despite external disturbances [7] - The company maintains strong collaboration with major clients such as Nike and Adidas, and is optimistic about long-term structural growth in the industry [7] - The company is expected to benefit from a dual increase in volume and price due to industry demand recovery and client structure changes [7] Financial Summary - Revenue projections for 2023 to 2027 are as follows: - 2023: 20,114 million RMB - 2024: 24,006 million RMB (19.35% YoY growth) - 2025E: 27,664 million RMB (15.24% YoY growth) - 2026E: 31,734 million RMB (14.71% YoY growth) - 2027E: 36,258 million RMB (14.25% YoY growth) [6] - Net profit projections for the same period are: - 2023: 3,200 million RMB - 2024: 3,840 million RMB (20.00% YoY growth) - 2025E: 3,560 million RMB (-7.31% YoY growth) - 2026E: 4,250 million RMB (19.39% YoY growth) - 2027E: 5,199 million RMB (22.35% YoY growth) [6] - Earnings per share (EPS) are projected to be: - 2023: 2.74 RMB - 2024: 3.29 RMB - 2025E: 3.05 RMB - 2026E: 3.64 RMB - 2027E: 4.46 RMB [6] Market Performance - The company's closing price is 52.20 RMB, with a market capitalization of 60,917.40 million RMB [3][4] - The company has a debt-to-asset ratio of 22.94% and a net asset value per share of 15.51 RMB [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has successfully advanced its new brand collaborations, with Q1 2025 revenue growth meeting expectations [5] - In Q1 2025, the company achieved revenue of 5.353 billion RMB, a year-on-year increase of 12.34%, while the net profit attributable to shareholders was 762 million RMB, a decrease of 3.25% [7] - The company continues to deepen cooperation with new clients and emerging sports brands, with sales of sports shoes reaching 49 million pairs, up 8.24% year-on-year [7] - The company has a strong dividend policy, distributing 2.3 RMB per share (including tax) for the 2024 fiscal year, with an expected payout ratio of approximately 70% of net profit [7] - The company is expanding its production capacity to meet downstream demand, with two new shoe factories starting operations in Q1 2025, increasing the workforce to 184,000, a year-on-year increase of 17% [7] - The growth in orders is driven by increased consumer demand in the sports industry and deeper collaborations with brands like Adidas [7] - The company is expected to see a rise in average selling price (ASP) due to structural changes in its client base [7] Financial Summary - Revenue projections for the company are as follows: - 2023: 20.114 billion RMB - 2024: 24.006 billion RMB (19.35% YoY growth) - 2025E: 27.664 billion RMB (15.24% YoY growth) - 2026E: 31.734 billion RMB (14.71% YoY growth) - 2027E: 36.258 billion RMB (14.25% YoY growth) [6] - Net profit projections are as follows: - 2023: 3.2 billion RMB - 2024: 3.84 billion RMB (20% YoY growth) - 2025E: 4.355 billion RMB (13.4% YoY growth) - 2026E: 4.959 billion RMB (13.87% YoY growth) - 2027E: 5.731 billion RMB (15.58% YoY growth) [6] - The company maintains a strong return on equity (ROE) of approximately 21% over the forecast period [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is expected to benefit from high industry prosperity, leading to performance growth, with expectations for new customers and production capacity remaining strong [4] - The company achieved a revenue of 24.006 billion RMB in 2024, representing a year-on-year growth of 19.35%, and a net profit of 3.840 billion RMB, up 20.00% year-on-year [6] - The company’s core business remains in sports and leisure shoes, with revenue from this segment reaching 20.991 billion RMB, a year-on-year increase of 17.88% [6] Financial Summary - Revenue Forecast: - 2023: 20.114 billion RMB - 2024: 24.006 billion RMB (19.35% YoY growth) - 2025E: 27.664 billion RMB (15.24% YoY growth) - 2026E: 31.734 billion RMB (14.71% YoY growth) - 2027E: 36.258 billion RMB (14.25% YoY growth) [5] - Net Profit Forecast: - 2023: 3.200 billion RMB - 2024: 3.840 billion RMB (20.00% YoY growth) - 2025E: 4.355 billion RMB (13.40% YoY growth) - 2026E: 4.959 billion RMB (13.87% YoY growth) - 2027E: 5.731 billion RMB (15.58% YoY growth) [5] - Earnings Per Share (EPS): - 2023: 2.74 RMB - 2024: 3.29 RMB - 2025E: 3.73 RMB - 2026E: 4.25 RMB - 2027E: 4.91 RMB [5] - Return on Equity (ROE): - 2023: 21.18% - 2024: 22.03% - 2025E: 21.22% - 2026E: 20.63% - 2027E: 20.39% [5] Market Performance - The company sold 223 million pairs of sports shoes in 2024, a year-on-year increase of 17.53%, with a production capacity of 229 million pairs, up 3.32% year-on-year [6] - The company’s production capacity utilization rate reached 96.72% in 2024, an increase of approximately 10 percentage points year-on-year [6] - The company plans to distribute a cash dividend of 23 RMB per 10 shares for the 2024 fiscal year, with an expected payout ratio of about 70% of net profit [6]